The influence of economic growth, energy consumption, poverty and population on Indonesia's environmental quality index

Abstract




The quality of the environment is very important for the sustainability of a country’s economic development, and the environment is influenced by macroeconomic indicators. This study aimed to analyze the effect of economic growth, energy consumption, poverty and population on Indonesia’s quality of environment index. The data used in this research were secondary data and multiple linear regression was used to analyze the data. Based on the results, energy consumption and population have a significant effect on the index of the quality of the living environment in Indonesia. Meanwhile, the variables of economic growth and poverty have a partially insignificant effect on this index. So the results provide empirical evidence that environmentally friendly energy consumption actions have been well managed. The population was found to have a negative effect on environmental quality, perhaps partly due to irresponsible exploitation by residents where natural resources have became an easy choice for fulfilling needs. These actions must be recognized as damaging the environment and threatening the survival of life.


Keywords: environmental quality index, economic growth, population, poverty, energy consumption




References
[1] Rafique MZ, Nadeem AM, Xia W, Ikram M, Shoaib HM, Shahzad U. Does economic complexity matter for environmental sustainability? Using ecological footprint as an indicator. Environment, Development and Sustainability 2021vol;(7);1- 18. https://doi.org/10.1007/s10668-021-01625-4

[2] Howe C. The role of education as a tool for environmental conservation and sustainable development [Ph.D dissertation]. 2009. Imperial College London C. Howe 200

[3] Pujiati A, Nihayah DM, Bowo PA. Causality between urban concentration and environmental Quality. Journal of Development Economics: Study of Economic and Development Problems. 2015;16(1):40–60.

[4] Taylor WABMS. Economic growth and the environment; Encyclopedia of Biodiversity. Vol:3 ed. 2013. Beijer International Institute of Ecological Economics, Stockholm, Swede, Elsevier Inc. All rights reserved.Th http://dx.doi.org/10.1016/B978-0-12- 384719-5.00433-0;(2):277-284

[5] Al-Mulali U, Saboori B, Ozturk I. Investigating the environmental Kuznets curve hypothesis in Vietnam. Energy Policy. 2015:76, issue C, 123-131

[6] Tang,Tang. The effect of foreign investment, gross domestic product, energy consumption, electricity consumption, and meat consumption on environmental quality in 41 countries in the world and 17 countries in Asia for the period 1999- 2013. Univ. Surabaya. Journal Student Science. 2017;2(2):1–12.

[7] Shurui J, Wang J, Shi L, Ma Z. Impact of energy consumption and air pollution on economic growth - An empirical study based on dynamic spatial durbin model. Energy Procedia. 2019;158:4011–4016. https://doi.org/10.1016/j.egypro.2019.01.839

[8] Rahman MM. Environmental degradation: The role of electricity consumption, economic growth and globalisation. Journal of Environment Management. 2020;253(jan):109742. DOI: 10.1016/j.jenvman.2019.109742

[9] Malerba D. Poverty alleviation and local environmental degradation: An empirical analysis in Colombia. World Dev. 2020;127:104776. https://doi.org/10.1016/j.worlddev.2019.104776

[10] Masron TA, Subramaniam Y. Renewable energy and poverty– environment nexus in developing countries. GeoJournal. 2021;86(1):303–315. https://doi.org/10.1007/s10708-019-10073-7

[11] Baloch MA, Danish, Khan SU-D, Ulucak ZS, Ahmad A. Analyzing the rela- tionship between poverty, income inequality, and CO2 emission in Sub- Saharan African countries. Science of the Total Environment. 2020;740:139867. https://doi.org/10.1016/j.scitotenv.2020.139867

[12] Weber H, Sciubba JD. The effect of population growth on the environment: Evidence from European regions. European Journal of Population. 2019;35(2):379– 402. https://doi.org/10.1007/s10680-018-9486-0

[13] Saliminezhad A, Ozdeser H, Birnintsaba DAB. Environmental degradation and economic growth: Time-varying and nonlinear evidence from Nigeria. Environment, Development and Sustainabili 2021. Online first articles.https://doi.org/10.1007/s10668-021-01702-8

[14] Abdouli M, Hammami S. Economic growth, environment, FDI inflows, and financial development in Middle East countries: Fresh evidence from simultane- ous equation models. Journal of the Knowledge Economy. 2020;11(2):479–511. https://doi.org/10.1007/s13132-018-0546-9

[15] Charfeddine L, Mrabet Z. The impact of economic development and social- political factors on ecological footprint: A panel data analysis for 15 MENA countries. Renewable and Sustainable

[16] Brock WA, Taylor MS. Economic growth and the environment: A review of theory and empirics. Handbook of Economic Growth, Volume 1B. Elsevier B.V. All rights reserved 2005; DOI: 10.1016/S1574-0684(05)01028-2

[17] Ghanem SK. The relationship between population and the environment and its impact on sustainable development in Egypt using a multi- equation model. Environment, Development and Sustainability. 2018;20(1):305–342. https://doi.org/10.1007/s10668-016-9882-8

[18] Kimani C. Impact of human population on land degradation: A critical literature review. Journal of Environment. 2021;1(2):1–14. https://doi.org/10.47941/je.622

[19] Culková K, Rosová A, Cehlár M, Khouri S. Evaluation of business with Earth resources from an economic indicator viewpoint BT - New approaches in management of smart manufacturing systems: Knowledge and practice. Knapcikova L, Balog M, Perakovic D, Periša M, editors. Cham: Springer International Publishing; 2020.