Can Climate Change Adaptation and Energy Efficiency Drive Economic Growth in Indonesia?

Climate change and energy efficiency contribute to economic growth. This study aims to examine the impact of climate change and energy efficiency on economic growth across various regions in Indonesia, considering the influence of primary industrial sectors and green investment. The data used is panel data from 13 provinces during the 2014–2023 period. The method used is Mixed-Effect Maximum Likelihood Regression. The research results show that climate change has a significant negative impact on economic growth, especially in regions with a low primary industrial sector. Conversely, energy efficiency demonstrates a significant positive impact, particularly in regions characterized by substantial green investment and a dominant non-primary sector. However, energy efficiency does not exhibit a significant impact in regions with a highly developed primary industrial sector, highlighting the need for modernization within this sector. Meanwhile, inflation was found to have no significant impact on economic growth across all regional categories. Climate change mitigation strategies, including reducing carbon emissions, enhancing energy efficiency, and increasing investment in green infrastructure, are essential for fostering inclusive and sustainable economic growth. Jell Classification: R11, P28, F43,C32