The impact of economic development and density population on environmental quality in Indonesia

Abstract

One of the important issues today is the problem of global warming and climate change. Global warming and climate change are phenomena of increasing concentrations of greenhouse gases in the atmosphere due to various human activities as a result of economic development activities. The success of economic development activities can be seen from the increase in the value of national output in the form of gross domestic income. Therefore, the purpose of this study is to determine the effect of economic development as measured by Gross Regional Domestic Product (GRDP) and population density to environmental quality in 33 provinces of Indonesia for the 2013-2018 period. The data in this study use GRDP of the agricultural sector, mining and quarrying, processing industry, transportation, population density and the environmental quality index (IKLH). In this study using panel data estimation. The research results show that the fixed effects method is the best method for estimating the existing variables. This research shows that the GRDP of the mining and quarrying sector has a negative and significant relationship with environmental quality in Indonesia. Then the GRDP variable in the transportation sector is positively and significantly related to the quality of the environment in Indonesia. Meanwhile, the variables of GRDP in the agricultural sector, GRDP in the transportation sector, and population density have no significant effect on the quality of the environment in Indonesia.