The Relationship between Air Pollution, Economic Growth, and Life Expectancy: Empirical Evidence from Indonesia

Abstract

This study investigates the relationship between air pollution, economicgrowth, and life expectancy in Indonesia. The observation periodduring 1985-2019 used time-series data obtained from the WorldBank. Quantitative approach by applying two main models, namelythe autoregressive distributed lag (ARDL) model by considering theeffect of time-lapse and Granger causality with vector error correctionmethod. Research findings prove that air pollution has a negativeand significant effect on life expectancy in the long run. Economicgrowth has a positive and significant effect on life expectancy. In theshort run, the current life expectancy is positively and significantlyinfluenced by the life expectancy of the previous period. Air pollutionhas a negative and significant effect on life expectancy, and economicgrowth has a negative and significant effect on life expectancy. Anotherfinding in the Granger causality model is a two-way relationshipbetween air pollution and life expectancy. Other evidence exists of atwo-way relationship between economic growth and air pollution. Inaddition, evidence of a unidirectional relationship of economic growthwith life expectancy in the short run. The cointegration equationshows evidence of a long-run relationship between air pollution,economic growth, and life expectancy.