Analysis of the Effects of Economic Growth and Development on Inequality and the Environment

Abstract

Economic growth is often only experienced by certain actors or households, causing income inequality. Economic growth is also synonymous with CO2 emissions. Economic growth will certainly increase CO2 emissions caused by increasing demand for energy consumption, which will cause environmental damage. The inverted Kuznets U curve is a theory that can be used to describe and explain economic development and growth. The research period is the last 12 years, namely 2010-2021. The research findings show that there is no inverted Kuznets U curve for the problem of inequality, which negates the effect of increasing per capita GRDP and economic growth on reducing inequality and poverty in Jambi Province. Second, the Mining and Quarrying Industry remains a sector that makes a dominant contribution to GRDP and is also the main driver of economic growth in Jambi Province, according to the results of Location Quotient and Shifts Share. Third, it is shown that environmental problems cause the Kuznets U curve to be inverted. According to data supporting the Environmental Kuznets Curve (EKC) hypothesis in Jambi Province, environmental pollution will eventually decrease due to economic expansion. The results of this study can be used as a basis for consideration in measuring the performance and quality of the economy of Jambi Province.