Does Inflation Reduce Air Pollution? Evidence from Indonesia

Inflation could likely cause devastating impacts where high inflation can harmful economic and social circumstances. However, only limited studies try to find the impact of inflation on the quality of air. The aim of this study is to investigate the empirical linkage between inflation and air pollut...

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Autores principales:	Setyadharma Andryan, Oktavilia Shanty, Sri Wahyuningrum Indah Fajarini, Nikensari Sri Indah, Saputra Arumawan Mei
Formato:	article
Lenguaje:	EN FR
Publicado:	EDP Sciences 2021
Materias:	Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/f4ded6ea11664cc4870bd2a903f7b60e
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spelling	oai:doaj.org-article:f4ded6ea11664cc4870bd2a903f7b60e2021-11-08T15:19:50ZDoes Inflation Reduce Air Pollution? Evidence from Indonesia2267-124210.1051/e3sconf/202131701068https://doaj.org/article/f4ded6ea11664cc4870bd2a903f7b60e2021-01-01T00:00:00Zhttps://www.e3s-conferences.org/articles/e3sconf/pdf/2021/93/e3sconf_icenis2021_01068.pdfhttps://doaj.org/toc/2267-1242Inflation could likely cause devastating impacts where high inflation can harmful economic and social circumstances. However, only limited studies try to find the impact of inflation on the quality of air. The aim of this study is to investigate the empirical linkage between inflation and air pollution in Indonesia covering the period of 1981 until 2017 by using an error correction model (ECM) methodological approach. The result of study suggests that in the short run, higher inflation is causing the lower level of air pollution. Similarly, in the long run, higher inflation is also affecting the lower level of air pollution. While there are a lot of negative impacts of inflation in Indonesia, the finding in this study indicates a positive impact of inflation in Indonesia, which is higher inflation can reduce the air pollution. The results seem contradict with the target of central bank of Indonesia to have a low but positive rate of inflation. Based on the findings, the study suggests the policymakers in Indonesia to support a robust role of inflation stability in achieving targets related to the reduction of air pollution.Setyadharma AndryanOktavilia ShantySri Wahyuningrum Indah FajariniNikensari Sri IndahSaputra Arumawan MeiEDP SciencesarticleEnvironmental sciencesGE1-350ENFRE3S Web of Conferences, Vol 317, p 01068 (2021)
institution	DOAJ
collection	DOAJ
language	EN FR
topic	Environmental sciences GE1-350
spellingShingle	Environmental sciences GE1-350 Setyadharma Andryan Oktavilia Shanty Sri Wahyuningrum Indah Fajarini Nikensari Sri Indah Saputra Arumawan Mei Does Inflation Reduce Air Pollution? Evidence from Indonesia
description	Inflation could likely cause devastating impacts where high inflation can harmful economic and social circumstances. However, only limited studies try to find the impact of inflation on the quality of air. The aim of this study is to investigate the empirical linkage between inflation and air pollution in Indonesia covering the period of 1981 until 2017 by using an error correction model (ECM) methodological approach. The result of study suggests that in the short run, higher inflation is causing the lower level of air pollution. Similarly, in the long run, higher inflation is also affecting the lower level of air pollution. While there are a lot of negative impacts of inflation in Indonesia, the finding in this study indicates a positive impact of inflation in Indonesia, which is higher inflation can reduce the air pollution. The results seem contradict with the target of central bank of Indonesia to have a low but positive rate of inflation. Based on the findings, the study suggests the policymakers in Indonesia to support a robust role of inflation stability in achieving targets related to the reduction of air pollution.
format	article
author	Setyadharma Andryan Oktavilia Shanty Sri Wahyuningrum Indah Fajarini Nikensari Sri Indah Saputra Arumawan Mei
author_facet	Setyadharma Andryan Oktavilia Shanty Sri Wahyuningrum Indah Fajarini Nikensari Sri Indah Saputra Arumawan Mei
author_sort	Setyadharma Andryan
title	Does Inflation Reduce Air Pollution? Evidence from Indonesia
title_short	Does Inflation Reduce Air Pollution? Evidence from Indonesia
title_full	Does Inflation Reduce Air Pollution? Evidence from Indonesia
title_fullStr	Does Inflation Reduce Air Pollution? Evidence from Indonesia
title_full_unstemmed	Does Inflation Reduce Air Pollution? Evidence from Indonesia
title_sort	does inflation reduce air pollution? evidence from indonesia
publisher	EDP Sciences
publishDate	2021
url	https://doaj.org/article/f4ded6ea11664cc4870bd2a903f7b60e
work_keys_str_mv	AT setyadharmaandryan doesinflationreduceairpollutionevidencefromindonesia AT oktaviliashanty doesinflationreduceairpollutionevidencefromindonesia AT sriwahyuningrumindahfajarini doesinflationreduceairpollutionevidencefromindonesia AT nikensarisriindah doesinflationreduceairpollutionevidencefromindonesia AT saputraarumawanmei doesinflationreduceairpollutionevidencefromindonesia
_version_	1718441908742651904

Does Inflation Reduce Air Pollution? Evidence from Indonesia

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