Environmental quality and macroeconomic phenomenon
BACKGROUND AND OBJECTIVES: This study aimed to analyze the influence of economic growth, industrialization, government spending, and environmental taxes on environmental quality as well as the influence of environmental quality, unemployment, and inflation on Indonesia’s economic growth. This condit...
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GJESM Publisher
2024-01-01
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| Series: | Global Journal of Environmental Science and Management |
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| Online Access: | https://www.gjesm.net/article_709464_9999b6eeea34e01bec1b6d4bb1a62ae3.pdf |
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| author | S. Amar A. Satrianto A. Ariusni A. Ikhsan E.S. Siregar |
| author_facet | S. Amar A. Satrianto A. Ariusni A. Ikhsan E.S. Siregar |
| author_sort | S. Amar |
| collection | DOAJ |
| description | BACKGROUND AND OBJECTIVES: This study aimed to analyze the influence of economic growth, industrialization, government spending, and environmental taxes on environmental quality as well as the influence of environmental quality, unemployment, and inflation on Indonesia’s economic growth. This condition is important to maintain environmentally friendly economic development to achieve sustainable development.METHODS: The study was conducted using simultaneous equation model analysis considering classical assumption tests such as normality tests, granger causality and heteroscedasticity. This study data began in 2015 to 2021 in 34 provinces in Indonesia. In this study, the determinants of environmental quality used were industrialization, government spending and environmental taxes, whereas those of economic growth were unemployment and inflation.FINDINGS: The results of the study indicate that economic growth, industrialization, government spending and environmental taxes have a significant effect on Indonesia’s environmental quality. Collectively, these determinants account for 22.18 percent of the variance. However, environmental quality and unemployment do not have a significant effect on Indonesia’s economic growth. Meanwhile, inflation has a significant effect on economic growth. Simultaneously, the influence of the determinants of economic growth is 33.52 percent.CONCLUSION: Economic growth, industrialization, government spending and environmental taxes have a significant influence on Indonesia’s environmental quality. On the other hand, environmental quality and unemployment do not have a significant effect on Indonesia’s economic growth. Meanwhile, inflation has a significant effect on economic growth. The policies suggested, include the following 1) the government must be able to maintain environmental quality while still encouraging economic growth, implemented by creating an environmentally sound growth concept or applying the green economic concept to harmonize growth and the environment; 2) the industrialization process must be maintained so that it does not damage the environment, and pollution threshold rules created in the industrialization process must be applied |
| format | Article |
| id | doaj-art-694cf3d8ff394e27bd1e8434dcd50398 |
| institution | Kabale University |
| issn | 2383-3572 2383-3866 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | GJESM Publisher |
| record_format | Article |
| series | Global Journal of Environmental Science and Management |
| spelling | doaj-art-694cf3d8ff394e27bd1e8434dcd503982025-02-03T00:33:21ZengGJESM PublisherGlobal Journal of Environmental Science and Management2383-35722383-38662024-01-0110279180410.22034/gjesm.2024.02.23709464Environmental quality and macroeconomic phenomenonS. Amar0A. Satrianto1A. Ariusni2A. Ikhsan3E.S. Siregar4Faculty of Economy and Business, Universitas Negeri Padang, Padang, IndonesiaFaculty of Economy and Business, Universitas Negeri Padang, Padang, IndonesiaFaculty of Economy and Business, Universitas Negeri Padang, Padang, IndonesiaFaculty of Economy and Business, Universitas Negeri Padang, Padang, IndonesiaSharia of Economy, STAIN Mandailing Natal, North Sumatera, IndonesiaBACKGROUND AND OBJECTIVES: This study aimed to analyze the influence of economic growth, industrialization, government spending, and environmental taxes on environmental quality as well as the influence of environmental quality, unemployment, and inflation on Indonesia’s economic growth. This condition is important to maintain environmentally friendly economic development to achieve sustainable development.METHODS: The study was conducted using simultaneous equation model analysis considering classical assumption tests such as normality tests, granger causality and heteroscedasticity. This study data began in 2015 to 2021 in 34 provinces in Indonesia. In this study, the determinants of environmental quality used were industrialization, government spending and environmental taxes, whereas those of economic growth were unemployment and inflation.FINDINGS: The results of the study indicate that economic growth, industrialization, government spending and environmental taxes have a significant effect on Indonesia’s environmental quality. Collectively, these determinants account for 22.18 percent of the variance. However, environmental quality and unemployment do not have a significant effect on Indonesia’s economic growth. Meanwhile, inflation has a significant effect on economic growth. Simultaneously, the influence of the determinants of economic growth is 33.52 percent.CONCLUSION: Economic growth, industrialization, government spending and environmental taxes have a significant influence on Indonesia’s environmental quality. On the other hand, environmental quality and unemployment do not have a significant effect on Indonesia’s economic growth. Meanwhile, inflation has a significant effect on economic growth. The policies suggested, include the following 1) the government must be able to maintain environmental quality while still encouraging economic growth, implemented by creating an environmentally sound growth concept or applying the green economic concept to harmonize growth and the environment; 2) the industrialization process must be maintained so that it does not damage the environment, and pollution threshold rules created in the industrialization process must be appliedhttps://www.gjesm.net/article_709464_9999b6eeea34e01bec1b6d4bb1a62ae3.pdfeconomic growthenvironmental qualityenvironmental taxesgovernment spendingindustrializationinflationunemployment |
| spellingShingle | S. Amar A. Satrianto A. Ariusni A. Ikhsan E.S. Siregar Environmental quality and macroeconomic phenomenon Global Journal of Environmental Science and Management economic growth environmental quality environmental taxes government spending industrialization inflation unemployment |
| title | Environmental quality and macroeconomic phenomenon |
| title_full | Environmental quality and macroeconomic phenomenon |
| title_fullStr | Environmental quality and macroeconomic phenomenon |
| title_full_unstemmed | Environmental quality and macroeconomic phenomenon |
| title_short | Environmental quality and macroeconomic phenomenon |
| title_sort | environmental quality and macroeconomic phenomenon |
| topic | economic growth environmental quality environmental taxes government spending industrialization inflation unemployment |
| url | https://www.gjesm.net/article_709464_9999b6eeea34e01bec1b6d4bb1a62ae3.pdf |
| work_keys_str_mv | AT samar environmentalqualityandmacroeconomicphenomenon AT asatrianto environmentalqualityandmacroeconomicphenomenon AT aariusni environmentalqualityandmacroeconomicphenomenon AT aikhsan environmentalqualityandmacroeconomicphenomenon AT essiregar environmentalqualityandmacroeconomicphenomenon |