Descriptive and predictive analyses of carbon emissions in Indonesia: a multifaceted approach incorporating stock market and commodity prices

This study examined the relationship between carbon emissions, stock market fluctuations, and key sector commodity prices in Indonesia. The nation’s carbon emissions have surged due to economic growth, energy dynamics, transportation advancements, and infrastructure expansion, primarily reliant on c...

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Main Authors: Alvin Muhammad 'Ainul Yaqin, Auliya Aisyah Putri, Vridayani Anggi Leksono, Noni Oktiana Setiowati, Remba Yanuar Efranto, Hilwa Dwi Putri Nabiha
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Carbon Management
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Online Access:https://www.tandfonline.com/doi/10.1080/17583004.2025.2496482
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author Alvin Muhammad 'Ainul Yaqin
Auliya Aisyah Putri
Vridayani Anggi Leksono
Noni Oktiana Setiowati
Remba Yanuar Efranto
Hilwa Dwi Putri Nabiha
author_facet Alvin Muhammad 'Ainul Yaqin
Auliya Aisyah Putri
Vridayani Anggi Leksono
Noni Oktiana Setiowati
Remba Yanuar Efranto
Hilwa Dwi Putri Nabiha
author_sort Alvin Muhammad 'Ainul Yaqin
collection DOAJ
description This study examined the relationship between carbon emissions, stock market fluctuations, and key sector commodity prices in Indonesia. The nation’s carbon emissions have surged due to economic growth, energy dynamics, transportation advancements, and infrastructure expansion, primarily reliant on carbon-intensive fuels. To support mitigation strategies, we explored the influence of economic growth, energy consumption, transportation and logistics, and infrastructure through structural equation modeling (SEM). The SEM model fitted well, demonstrating the significant impact of the transportation and logistics (p-value of .016) and infrastructure investments (p-value of .002) on carbon emissions. Predictive analysis using long short-term memory (LSTM) and multiple linear regression (MLR) revealed LSTM’s superior performance in forecasting carbon emission levels, with a root mean square error (RMSE), mean absolute percentage error (MAPE), and coefficient of determination (R2) of 7.07E-07, 14.80%, and 0.8550, respectively. In contrast, MLR exhibited an RMSE, MAPE, and R2 of 0.8138, 99.95%, and 0.6897. This research underscores the critical roles of the transportation and logistics sectors strategic infrastructure investments in shaping carbon emissions while highlighting LSTM’s effectiveness in predictive analysis. These insights are crucial for policymakers and stakeholders to formulate effective strategies for mitigating carbon emissions and promoting sustainable development in Indonesia.
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spelling doaj-art-29bdba42e3714b79a0e1c940ed00714b2025-08-20T03:13:48ZengTaylor & Francis GroupCarbon Management1758-30041758-30122025-12-0116110.1080/17583004.2025.2496482Descriptive and predictive analyses of carbon emissions in Indonesia: a multifaceted approach incorporating stock market and commodity pricesAlvin Muhammad 'Ainul Yaqin0Auliya Aisyah Putri1Vridayani Anggi Leksono2Noni Oktiana Setiowati3Remba Yanuar Efranto4Hilwa Dwi Putri Nabiha5Systems Modeling and Optimization Research Group, Department of Industrial Engineering, Institut Teknologi Kalimantan, Balikpapan, IndonesiaSystems Modeling and Optimization Research Group, Department of Industrial Engineering, Institut Teknologi Kalimantan, Balikpapan, IndonesiaDepartment of Industrial Engineering, Institut Teknologi Kalimantan, Balikpapan, IndonesiaDepartment of Safety Engineering, Institut Teknologi Kalimantan, Balikpapan, IndonesiaDepartment of Industrial Engineering, Universitas Brawijaya, Malang, IndonesiaSystems Modeling and Optimization Research Group, Department of Industrial Engineering, Institut Teknologi Kalimantan, Balikpapan, IndonesiaThis study examined the relationship between carbon emissions, stock market fluctuations, and key sector commodity prices in Indonesia. The nation’s carbon emissions have surged due to economic growth, energy dynamics, transportation advancements, and infrastructure expansion, primarily reliant on carbon-intensive fuels. To support mitigation strategies, we explored the influence of economic growth, energy consumption, transportation and logistics, and infrastructure through structural equation modeling (SEM). The SEM model fitted well, demonstrating the significant impact of the transportation and logistics (p-value of .016) and infrastructure investments (p-value of .002) on carbon emissions. Predictive analysis using long short-term memory (LSTM) and multiple linear regression (MLR) revealed LSTM’s superior performance in forecasting carbon emission levels, with a root mean square error (RMSE), mean absolute percentage error (MAPE), and coefficient of determination (R2) of 7.07E-07, 14.80%, and 0.8550, respectively. In contrast, MLR exhibited an RMSE, MAPE, and R2 of 0.8138, 99.95%, and 0.6897. This research underscores the critical roles of the transportation and logistics sectors strategic infrastructure investments in shaping carbon emissions while highlighting LSTM’s effectiveness in predictive analysis. These insights are crucial for policymakers and stakeholders to formulate effective strategies for mitigating carbon emissions and promoting sustainable development in Indonesia.https://www.tandfonline.com/doi/10.1080/17583004.2025.2496482Carbon emissionsstock marketcommodity pricesIndonesiastructural equation modelinglong short-term memory
spellingShingle Alvin Muhammad 'Ainul Yaqin
Auliya Aisyah Putri
Vridayani Anggi Leksono
Noni Oktiana Setiowati
Remba Yanuar Efranto
Hilwa Dwi Putri Nabiha
Descriptive and predictive analyses of carbon emissions in Indonesia: a multifaceted approach incorporating stock market and commodity prices
Carbon Management
Carbon emissions
stock market
commodity prices
Indonesia
structural equation modeling
long short-term memory
title Descriptive and predictive analyses of carbon emissions in Indonesia: a multifaceted approach incorporating stock market and commodity prices
title_full Descriptive and predictive analyses of carbon emissions in Indonesia: a multifaceted approach incorporating stock market and commodity prices
title_fullStr Descriptive and predictive analyses of carbon emissions in Indonesia: a multifaceted approach incorporating stock market and commodity prices
title_full_unstemmed Descriptive and predictive analyses of carbon emissions in Indonesia: a multifaceted approach incorporating stock market and commodity prices
title_short Descriptive and predictive analyses of carbon emissions in Indonesia: a multifaceted approach incorporating stock market and commodity prices
title_sort descriptive and predictive analyses of carbon emissions in indonesia a multifaceted approach incorporating stock market and commodity prices
topic Carbon emissions
stock market
commodity prices
Indonesia
structural equation modeling
long short-term memory
url https://www.tandfonline.com/doi/10.1080/17583004.2025.2496482
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