Investigating the theory of environmental Kuznets curve on environmental quality index in Indonesia
DOI:
https://doi.org/10.12928/optimum.v15i1.8752Keywords:
Environmental Kuznets curve, Human capital, Panel dataAbstract
The relationship between economy, environment, and human capital has developed into a discourse that has attracted the attention of all parties, especially academics. The inconsistency of research results that occur in developing and developed countries is our basis for conducting research with the hypotheses that have been built. This research aimed to determine the effect of human capital and gross domestic product on environmental quality in Indonesia. This study used panel data during the 2015-2020 period. The ordinary least square analysis measures the effect of the independent variables on the dependent one in the model. The results of this study indicate that human capital has a positive and significant impact on improving the quality of the environment. There are several aspects on which human capital can positively affect the environment, one of which is education. On the other hand, an increase in GDP has an inverse effect on the environment. This is because the economy's orientation in developing countries still focuses on the industrialization sector, which negatively impacts the environment. Moreover, this is reinforced by the low level of supervision carried out by the regional or central government.
References
Abbasi, K. R., Kirikkaleli, D., & Altuntas, M. (2022). Carbon dioxide intensity of GDP and environmental degradation in an emerging country. Environmental Science and Pollution Research, 29(56), 8445-8447. https://doi.org/10.1007/s11356-022-21679-9
Bakirtas, I., & Cetin, M. A. (2017). Revisiting the environmental Kuznets curve and pollution haven hypotheses: MIKTA sample. Environmental Science and Pollution Research, 24(22), 18273-18283. https://doi.org/10.1007/s11356-017-9462-y
Balaguer, J., & Cantavella, M. (2018). The role of education in the environmental kuznets curve. evidence from Australian data. Energy Economics, 70, 289-296. https://doi.org/10.1016/j.eneco.2018.01.021
Brooks, R. (2011). CO2 emissions and economic growth. The International Journal of Climate Change: Impacts and Responses, 2(3), 25-36. https://doi.org/10.18848/1835-7156/CGP/v02i03/37070
Cole, M. A., Rayner, A. J., & Bates, J. M. (1997). The environmental kuznets curve: An empirical analysis. Environment and Development Economics, 2(4), 401-416. https://doi.org/10.1017/S1355770X97000211
Dinda, S. (2004). Environmental kuznets curve hypothesis: A survey. Ecological Economics, 49(4), 431-455. https://doi.org/10.1016/j.ecolecon.2004.02.011
Fauziyah, S., & Trisnawati, R. (2022). Pengaruh Produk Domestik Regional Bruto (PDRB), Indeks Pembangunan Manusia (IPM), Dana Pihak Ketiga Perbankan Syariah (DPK), Indeks Kualitas Lingkungan Hidup (IKLH), dan Dana Alokasi Khusus (DAK) terhadap Perkembangan Sustainable Development Goals (SDGs). Jurnal Ekonomi Dan Bisnis, 11(1), 1428-1437.
Grossman, & Krueger, A. B. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 110(2), 353-377. https://doi.org/10.2307/2118443
Gujarati, D. N., & Porter, D. C. (2012). Dasar-Dasar Ekonometrika (H. Dedy A (ed.); Edisi 5). Salemba Empat.
Hayat, N. Z., Kurniawan, M. L. A., & Wong, W.-K. (2023). The role of inequality in Indonesia: Does fiscal decentralization matter? Jurnal Ekonomi Dan Studi Pembangunan, 15(2), 111-120. https://doi.org/10.17977/um002v15i22023p111
He, G., Xie, Y., & Zhang, B. (2020). Expressways, GDP, and the environment: The case of China. Journal of Development Economics, 145, 102485. https://doi.org/10.1016/j.jdeveco.2020.102485
Hidayati, A. Z., & Zakianis. (2022). Analisis faktor-faktor yang mempengaruhi Indeks Kualitas Lingkungan Hidup (IKLH) di Indonesia tahun 2017-2019. Jurnal Medika Utama, 03(01), 2327.
Hill, R. J., Magnani, E., & Hill, R. (1955). An Exploration of the conceptual and empirical basis of the Environmental Kuznets Curve. Kuznets, 1955.
Lan, J., Kakinaka, M., & Xianguo, H. (2012). Foreign direct investment, human capital and environmental pollution in China. Environmental and Resource Economics, 51(2), 255-275. https://doi.org/10.1007/s10640-011-9498-2
Lestari, A. P., Napitupulu, A., Amalia, A., Putri, A. P., Armanto, A. N., Ramdani, D. A., Suarga, E., Damayanti, H., Darliazi, I., Medrilzam, M., Nasution, M. I., Gardian, P. I., Irmansyah, R., Ida, S., & Dwitiyasih, T. (2020). Green economy index : A step forward to measure the progress of low carbon and green economy in Indonesia. In Bappenas.
Marshall, G. R., Hine, D. W., & East, M. J. (2017). Can Community-based governance strengthen citizenship in support of climate change adaptation? Testing insights from self-determination theory. Environmental Science and Policy, 72, 1-9. https://doi.org/10.1016/j.envsci.2017.02.010
Martinez, K. E., Crenshaw, E. ., & Jenkins, J. C. (2003). Deforestation and the environmental kuznets curve: A cross-national investigation of intervening mechanisms. Social Science Quarterly, 83(1), 227-241. https://doi.org/10.1111/1540-6237.00080
Meadows, D., Randers, J., & Meadows, D. (2006). Limits to growth: The 30-year update. Strategic Direction, 22(1), 368. https://doi.org/10.1108/sd.2006.05622aae.002
Narayan, P. K., & Narayan, S. (2010). Carbon dioxide emissions and economic growth: Panel data evidence from developing countries. Energy Policy, 38(1), 661-666. https://doi.org/10.1016/j.enpol.2009.09.005
Pambudi, A. S. (2020). Analisis keterkaitan indeks pembangunan manusia terhadap indeks kualitas lingkungan hidup di Sulawesi Selatan. Monas: Jurnal Inovasi Aparatur, 2(1), 109-123. https://doi.org/10.54849/monas.v2i1.14
Ross, F. (2019). Kate Raworth - Doughnut economics: Seven ways to think like a 21st century economist (2017). Regional and Business Studies, 11(2), 84. https://doi.org/10.33568/rbs.2409
Sapkota. (2017). Foreign direct investment, income, and environmental pollution in developing countries: Panel data analysis of Latin America. Energy Economics, 64, 206-212. https://doi.org/10.1016/j.eneco.2017.04.001
Schultz, T. P. (1988). Chapter 13 Education investments and returns. Handbook of Development Economics, 1, 543-630. https://doi.org/10.1016/S1573-4471(88)01016-2
SE4ALL. (2013). Stakeholders Unveil Programs in Support of the Sustainable Energy for All (SEforALL) Initiative. SE4ALL.
Stern, Michael, C. S., & Edward, B. B. (1996). Economic growth and environmental degradation: The environmental kuznets curve and sustainable development. World Development, 24(7), 1151-1160. https://doi.org/10.1016/0305-750X(96)00032-0
Wang, Y., Han, R., & Kubota, J. (2016). Is there an environmental kuznets curve for so2 emissions? A semi-parametric panel data analysis for China. Renewable and Sustainable Energy Reviews, 54, 1182-1188. https://doi.org/10.1016/j.rser.2015.10.143
Williamson, C. (2017). Emission, education, and politics: An empirical study of the carbon dioxide and methane environmental kuznets curve. The Park Place Economist, 25(1), 9.
Xepapadeas, A. (2005). Chapter 23 Economic growth and the environment. Handbook of Environmental Economics, 3(05), 1219-1271. https://doi.org/10.1016/S1574-0099(05)03023-8 https://doi.org/10.1016/S1574-0099(05)03023-8
Zilio, M., & Recalde, M. (2011). GDP and environment pressure: The role of energy in Latin America and the Caribbean. Energy Policy, 39(12), 7941-7949. https://doi.org/10.1016/j.enpol.2011.09.049
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Yanuar Bangun Nurcahyo, Sausan Fatin, Muhammad Fathur Reza
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
