E3S Web Conf.
Volume 202, 2020The 5th International Conference on Energy, Environmental and Information System (ICENIS 2020)
|Number of page(s)||6|
|Section||Environmental Policy, Planning and Education|
|Published online||10 November 2020|
A New Insight of the Existence of the Environmental Kuznets Curve in Indonesia
1 Faculty of Economics, Universitas Negeri Semarang, Semarang, Indonesia
2 Undergraduate Program of Development Economics, Universitas Negeri Semarang, Semarang, Indonesia
* Corresponding author: firstname.lastname@example.org
Natural resources play as vital inputs for economic activities, mainly in developing countries. However, massive use of natural resources puts more pressure on the environment and as the result, the quality of environment is deteriorating. The body of economic literature have shown that income is associated with harm to the natural environment. The relationship between income and degradation of the environment is known as the Environmental Kuznets Curve (EKC) hypothesis. Previous studies of EKC hypothesis in Indonesia are still limited and the results are inconclusive due to different results. Therefore, the aim of this study is to present a new insight of the existence of EKC in Indonesia using different method. Most of previous studies of EKC in Indonesia employ Autoregressive distributed lag (ARDL) method, while this study uses data panel regression method from 33 provinces in Indonesia during 2012 to 2018. The result confirms the existence of EKC hypothesis in Indonesia. This study also estimates the turning point, a level of income that starts give positive impact on the environment. This result gives new insight to the existing literature. The policy implication for policymakers are straightforward, i.e. improve wealth of the society through higher income for the protection of the environment.
Key words: Environmental Kuznets Curve / Environmental degradation / Income / Panel data
© The Authors, published by EDP Sciences, 2020
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