Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis

This study analyzed the relationship of economic development, population density, and the number of vehicles on environmental degradation from 31 provinces in Indonesia for the period 2011-2019. Panel data analysis, which is widely used to examine issues that could not be studied in either cross-sec...

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Autor principal:	M Irsyad Ilham
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Muhammadiyah Yogyakarta 2021
Materias:	environmental quality index economic development population density number of vehicles panel data regression Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/bdd6cce19bcc4b37a6b40be87d1fb442
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spelling	oai:doaj.org-article:bdd6cce19bcc4b37a6b40be87d1fb4422021-11-05T03:54:11ZEconomic Development and Environmental Degradation in Indonesia: Panel Data Analysis1411-99002541-550610.18196/jesp.v22i2.7629https://doaj.org/article/bdd6cce19bcc4b37a6b40be87d1fb4422021-10-01T00:00:00Zhttps://journal.umy.ac.id/index.php/esp/article/view/7629https://doaj.org/toc/1411-9900https://doaj.org/toc/2541-5506This study analyzed the relationship of economic development, population density, and the number of vehicles on environmental degradation from 31 provinces in Indonesia for the period 2011-2019. Panel data analysis, which is widely used to examine issues that could not be studied in either cross-section or time-series alone, is used herein. The empirical results support the hypothesis on the direction of causality from those three factors of environmental damage in the country. The results concluded that economic development, population density, and the number of vehicles impacted on environmental degradation in Indonesia. The smallest cross-section random effect indicates the lowest environmental quality when all factors are fixed. The empirical findings provide important policy implications for Indonesia and it will direct its economic development model towards a green economic one. On the other hand, the growth of the population should be equalized with growth in human development. The distribution of population should be equalized among provinces by opening a new economic cluster to supply new work-fields. In addition, it should be for the country to create a more-educated population in order to protect environmental quality. Despite the unstoppable growth of vehicles, the government should implement the development of eco-friendly combustion technology besides reducing fuel consumption. Moreover, the road-making by plastic-based material can be considered to prevent land damage from plastic waste and might also recycle plastics which has caused pollution in Indonesia.M Irsyad IlhamUniversitas Muhammadiyah Yogyakartaarticleenvironmental quality indexeconomic developmentpopulation densitynumber of vehiclespanel data regressionEconomic theory. DemographyHB1-3840ENJurnal Ekonomi & Studi Pembangunan, Vol 22, Iss 2, Pp 185-200 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	environmental quality index economic development population density number of vehicles panel data regression Economic theory. Demography HB1-3840
spellingShingle	environmental quality index economic development population density number of vehicles panel data regression Economic theory. Demography HB1-3840 M Irsyad Ilham Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis
description	This study analyzed the relationship of economic development, population density, and the number of vehicles on environmental degradation from 31 provinces in Indonesia for the period 2011-2019. Panel data analysis, which is widely used to examine issues that could not be studied in either cross-section or time-series alone, is used herein. The empirical results support the hypothesis on the direction of causality from those three factors of environmental damage in the country. The results concluded that economic development, population density, and the number of vehicles impacted on environmental degradation in Indonesia. The smallest cross-section random effect indicates the lowest environmental quality when all factors are fixed. The empirical findings provide important policy implications for Indonesia and it will direct its economic development model towards a green economic one. On the other hand, the growth of the population should be equalized with growth in human development. The distribution of population should be equalized among provinces by opening a new economic cluster to supply new work-fields. In addition, it should be for the country to create a more-educated population in order to protect environmental quality. Despite the unstoppable growth of vehicles, the government should implement the development of eco-friendly combustion technology besides reducing fuel consumption. Moreover, the road-making by plastic-based material can be considered to prevent land damage from plastic waste and might also recycle plastics which has caused pollution in Indonesia.
format	article
author	M Irsyad Ilham
author_facet	M Irsyad Ilham
author_sort	M Irsyad Ilham
title	Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis
title_short	Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis
title_full	Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis
title_fullStr	Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis
title_full_unstemmed	Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis
title_sort	economic development and environmental degradation in indonesia: panel data analysis
publisher	Universitas Muhammadiyah Yogyakarta
publishDate	2021
url	https://doaj.org/article/bdd6cce19bcc4b37a6b40be87d1fb442
work_keys_str_mv	AT mirsyadilham economicdevelopmentandenvironmentaldegradationinindonesiapaneldataanalysis
_version_	1718444552544583680

Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis

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