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

In: Proceedings of the 8th International Conference on Accounting, Management, and Economics (ICAME 2023)

Author

Listed:
  • 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)

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.

Suggested Citation

  • Nur Dwiana Sari Saudi & Amanus Khalifah Fil’ardy & Retno Fitrianti & Fitriwati Djam’an & Muhammad Ashary Anshar, 2024. "Economic Activities, Energy Consumption, and Environmental Quality in Indonesia towards a Green Economy," Advances in Economics, Business and Management Research, in: Arianto Patunru & Mubariq Ahmad & Mursalim Nohong & Arifuddin Arifuddin & Anas Iswanto Anwar & Rakhm (ed.), Proceedings of the 8th International Conference on Accounting, Management, and Economics (ICAME 2023), pages 834-842, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-400-6_63
    DOI: 10.2991/978-94-6463-400-6_63
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