Effect of Energy Consumption and Economic Growth towards the environmental quality of Indonesia

Abstract

Economic development as a process of improving people's welfare in a country can also lead the declining of the environment quality. The degradation of the environment can be caused by the energy consumption required in the development process, as well as pollution. The main purpose of this study is to analyze empirically the impact of energy consumption and economic growth toward environmental quality which is measured by environmental quality index. This study employs the econometric model of panel data of 34 provinces in Indonesia along 2011-2016. The study finds the long-term relationship between energy consumption and economic growth on environmental quality in Indonesia.

Keywords

• environmental quality
• energy consumption
• economic growth
• panel data regression