Economic Activities, Energy Consumption, and Environmental Quality in Indonesia towards a Green Economy

Nur Dwiana Sari Saudi (), Amanus Khalifah Fil’ardy, Retno Fitrianti, Fitriwati Djam’an and Muhammad Ashary Anshar
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Nur Dwiana Sari Saudi: Universitas Hasanuddin, Faculty of Economics and Business
Amanus Khalifah Fil’ardy: Universitas Hasanuddin, Faculty of Economics and Business
Retno Fitrianti: Universitas Hasanuddin, Faculty of Economics and Business
Fitriwati Djam’an: Universitas Hasanuddin, Faculty of Economics and Business
Muhammad Ashary Anshar: 5Institute for Business and Finance NITRO

A chapter in Proceedings of the 8th International Conference on Accounting, Management, and Economics (ICAME 2023), 2024, pp 834-842 from Springer

Abstract: Abstract This study aimed to analyze the determinants that affect Environmental Quality in Indonesia. The independent variables in this study were Gross Domestic Product, Population, and Energy Consumption. Meanwhile, the dependent variable in this study was the Environmental Quality Index (EQI). The data utilized in this study were time series data from 2009 to 2021 in Indonesia and were analyzed using multiple linear regression analysis. The results of this study show that the Gross Domestic Product (GDP) variable exerts a negative and significant effect on the Environmental Quality Index in Indonesia, while the population variable exerts a positive and significant effect on the Environmental Quality Index in Indonesia. However, the energy consumption variable exerts a negative and insignificant effect on the Environmental Quality Index in Indonesia. The negative effect of GDP is because GDP output produced through economic activities always causes environmental damage. Furthermore, the positive effect of the population is because the dominant population in Indonesia already understands the importance of environmental preservation, as evidenced by a large number of organizations or communities engaged in environmental preservation. This forms the basis for the population having a positive effect on Environmental Quality in Indonesia. Whereas, the negative insignificant effect of energy consumption is because the measurement of energy consumption is more likely to be associated with CO2 emissions than with the Environmental Quality Index in Indonesia.

Keywords: Gross Domestic Product; Population; Energy Consumption; Environmental Quality Index (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-400-6_63

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DOI: 10.2991/978-94-6463-400-6_63

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