Research

Indonesia: The Cost Of Reducing Pollution

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Algo Research Team

Economics | Aug 20, 2023 | Views: 234

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Key Summary:

  • Biggest CO2 pollution is from coal, but it allows growth & affordability
  • Improving use in renewable energy, yet investment requires large capital
  • Evaluating government policies: Mass transportation is preferable than EV

Climate is a "public good"; it is for everyone. Although it is not new, the topic surrounding pollution has been trending lately. In this research, we want to discuss the trade-off between pollution and the economy.


Energy is an essential part to support and drive the economy; higher economic growth will lead to higher pollution. Consequently, reducing pollution will be economically costly and eventually the costs will be "charged" to everyone. We also need to take into account externalities like healthcare costs due to pollution, which could hinder economic growth.

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