The Relationship Between Environmental Degradation, Poverty and Human Quality in Indonesia

Abstract

Economic growth, environmental quality, and human quality affect each other. The economic growth which is driven primarily by industrialization and trade openness, degrades the environment. Meanwhile, the growth and environmental quality can affect human quality. This research analyzes those relationship by develop two panel econometrics models for 31 provinces in Indonesia during 2010-2015. The first model examines how the environmental quality, economic growth, poverty rate, population density, and global trade affect human development index as representation of human quality. The second model analyzes the effect of economic growth, human quality, population density, poverty, and global trade on environmental quality. This study finds that the economic growth, environmental quality and globalization affect human quality in Indonesia positively, while the poverty and population density affect negatively. The human quality have positive effect on environmental quality in Indonesia, while the economic growth, global trade, poverty and population density variables have the negative effect.