Nexus between Issue of Environmental Pollution and the Urban Population: Evidence of Economic Growth in Indonesia
Abstract
This study aims to analyze the factors that cause climate change that occurs in Indonesia. From every effort to increase economic growth, some elements are sacrificed. The Oil Palm Industry, high levels of CO2 emissions, Gini ratio index, and population increase in urban areas are variables used in this research. This research was conducted for thirty years, from 1990 to 2020. The analysis model used was the Vector Error Correction Model (VECM). The estimation results show that the palm oil industry, the impact of CO2 emissions, and the increase in urban population have a positive effect in the long term but do not impact economic growth in the long term because one of them is environmental quality degradation. Therefore, sometimes every effort to increase economic growth must be accompanied by mitigation of environmental impacts that will affect the short and long term.
Keywords
Full Text:
PDFReferences
Agung, P., Hartono, D., & Awirya, A. A. (2017). Pengaruh urbanisasi terhadap konsumsi energi dan emisi CO2: Analisis provinsi di Indonesia. Jurnal Ekonomi Kuantitatif Terapan, 10(1), 9-17. https://doi.org/10.24843/JEKT.2017.v10.i01.p02
Alatas, A. (2015). Trend produksi dan ekspor minyak sawit (CPO) Indonesia. AGRARIS: Journal of Agribusiness and Rural Development Research, 1(2), 114–124. https://doi.org/10.18196/agr.1215
Ali, U., Herbst, C. M., & Makridis, C. A. (2021). The impact of COVID-19 on the U.S. childcare market: Evidence from stay-at-home orders. Economics of Education Review, 82, [102094]. https://doi.org/10.1016/j.econedurev.2021.102094
Almer, C., & Winkler, R. (2017). Analyzing the effectiveness of international environmental policies: The case of the Kyoto Protocol. Journal of Environmental Economics and Management, 82, 125–151. https://doi.org/10.1016/j.jeem.2016.11.003
Amalia, R., Dharmawan, A. H., Prasetyo, L. B., & Pacheco, P. (2019). Perubahan tutupan lahan akibat ekspansi perkebunan kelapa sawit: Dampak sosial, ekonomi dan ekologi. Jurnal Ilmu Lingkungan, 17(1), 130. https://doi.org/10.14710/jil.17.1.130-139
Aprina, H. (2014). Analisis pengaruh harga crude palm oil (CPO) dunia terhadap nilai tukar riil rupiah. Buletin Ekonomi Moneter Dan Perbankan, 16(4), 315–338. https://doi.org/10.21098/bemp.v16i4.15
Argüeso, D., Evans, J. P., Fita, L., & Bormann, K. J. (2013). Temperature response to future urbanization and climate change. Climate Dynamics, 42(7-8), 2183–2199. https://doi.org/10.1007/s00382-013-1789-6
Atik, U. (2012). Pendugaan emisi CO2 sebagai gas rumah kaca akibat kebakaran hutan dan lahan pada berbagai tipe penutupan lahan di Provinsi Kalimantan Tengah tahun 2000-2009. Fakutas Kehutanan. Institut Pertanian Bogor.
Bahuet, C. (2017). Sustainable palm oil for all. United Nations Development Programme. Retrieved from https://www.id.undp.org/content/indonesia/en/home/presscenter/articles/2017/06/20/sustainable-palm-oil-for-all.html
Bantika, V., Suzana, B.O.L., & Kapantow, G.H.M. (2015). Faktor-faktor yang mempengaruhi ketimpangan distribusi pendapatan di Sulawesi Utara. Cocos, 6(17). Retrieved from https://ejournal.unsrat.ac.id/index.php/cocos/article/view/10460
Barika, B., Armelly, A., & Benardin, B. (2021). Tinjauan kausalitas indikator makroekonomi di provinsi Bengkulu. Convergence: The Journal of Economic Development, 2(2), 118–132. https://doi.org/10.33369/convergence-jep.v2i2.12536
Berthelot, S., & Robert, A.-M. (2011). Climate change disclosures: An examination of Canadian oil and gas firms. Social And Environmental Accounting, 5(2), 106. https://doi.org/10.22164/isea.v5i2.61
Brown, D., Boyd, D. S., Brickell, K., Ives, C. D., Natarajan, N., & Parsons, L. (2019). Modern slavery, environmental degradation and climate change: Fisheries, field, forests and factories. Environment and Planning E: Nature and Space, 4(2), 191–207. https://doi.org/10.1177/2514848619887156
Cabinet Secretariat of The Republic of Indonesia (Setkab). (2015). Prioritas Untuk Petani Marjinal, Pemerintah Segera Bagikan Lahan Seluas 9 Juta Hektar. Retrieved from https://setkab.go.id/prioritas-untuk-petani-marjinal-pemerintah-segera-bagikan-lahan-seluas-9-juta-hektar/
Cherniwchan, J. (2017). Trade liberalization and the environment: Evidence from NAFTA and U.S. manufacturing. Journal of International Economics, 105, 130–149. https://doi.org/10.1016/j.jinteco.2017.01.005
Dadhich, J., Smith, J. P., Iellamo, A., & Suleiman, A. (2021). Climate change and infant nutrition: estimates of greenhouse gas emissions from milk formula sold in selected Asia Pacific Countries. Journal of Human Lactation, 37(2), 314–322. https://doi.org/10.1177/0890334421994769
Eka Yulian, B., Dharmawan, A. H., Soetarto, E., & Pacheco, P. (2018). Livelihood dilemma of the rural household around the oil palm plantation in East Kalimantan. Sodality: Jurnal Sosiologi Pedesaan, 5(3), 1-8. https://doi.org/10.22500/sodality.v5i3.19398
Espeland, E. K., & Kettenring, K. M. (2018). Strategic plant choices can alleviate climate change impacts: A review. Journal of Environmental Management, 222, 316–324. https://doi.org/10.1016/j.jenvman.2018.05.042
Etale, L., & Simatele, M. D. (2021). Climate change adaptation for food security and gendered-land rights in Western Kenya. Journal of Asian and African Studies, https://doi.org/10.1177%2F0021909620988302
Fetahi-Vehapi, M., Sadiku, L., & Petkovski, M. (2015). Empirical analysis of the effects of trade openness on economic growth: Evidence for south east European countries. Procedia economics and finance, 19, 17–26. https://doi.org/10.1016/s2212-5671(15)00004-0
Food and Agriculture Organization (FAO). (2018). Strong policies, certification key to sustainable oil palm production. Retrieved from http://www.fao.org/forestry/news/94861/en/
Frankel, J. A., & Romer, D. (1999). Does trade cause growth? American Economic Review, 89(3), 379–399. https://doi.org/10.1257/aer.89.3.379
Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI) (2016). Refleksi industri kelapa sawit 2015 dan Prospek 2016. https://gapki.id/news/397/refleksi-industri-kelapa-sawit-2015-dan-prospek-2016
Gassner, A., Harris, D., Mausch, K., Terheggen, A., Lopes, C., Finlayson, R., & Dobie, P. (2019). Poverty eradication and food security through agriculture in Africa: Rethinking objectives and entry points. Outlook on Agriculture, 48(4), 309–315. https://doi.org/10.1177/0030727019888513
Ghosh, M. (2019). Climate-smart agriculture, productivity, and food security in India. Journal of Development Policy and Practice, 4(2), 166–187. https://doi.org/10.1177/2455133319862404
Greenpeace. (2013). Certifying Destruction. Retrieved from https://www.greenpeace.org/static/planet4-sweden-stateless/2019/01/69d1a6b8-69d1a6b8-rspo-certifying-destruction.pdf
Heizmann, B., & Huth, N. (2021). Economic conditions and perceptions of immigrants as an economic threat in Europe: Temporal dynamics and mediating processes. International Journal of Comparative Sociology, 62(1), 56–82. https://doi.org/10.1177/0020715221993529
Iskandar, A. (2015). Dampak perubahan harga crude palm oil (CPO) dunia terhadap value ekspor komoditas kelapa sawit dan perekonomian Indonesia (Pendekatan vector autoregression analysis). Journal Info Artha, 2(1), 1-17. Retrieved from http://jurnal.pknstan.ac.id/index.php/JIA/article/view/113
Jakob, T., & Merk, H. F. (2011). Impact, impact, impact. Allergo Journal, 20(7), 371. https://doi.org/10.1007/bf03362565
Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in gaussian vector autoregressive models. Econometrica, 59(6), 1551-1580. https://doi.org/10.2307/2938278
Kadarusman, Y. B., & Herabadi, A. G. (2018). Improving sustainable development within indonesian palm oil: The importance of the reward system. Sustainable Development, 26(4), 422–434. https://doi.org/10.1002/sd.1715
Khanna, A. (2020). Impact of migration of labour force due to global COVID-19 pandemic with reference to India. Journal of Health Management, 22(2), 181–191. https://doi.org/10.1177/0972063420935542
Khatun, R., Reza, M. I. H., Moniruzzaman, M., & Yaakob, Z. (2017). Sustainable oil palm industry: The possibilities. Renewable and Sustainable Energy Reviews, 76, 608–619. https://doi.org/10.1016/j.rser.2017.03.077
Korkut, N. E., Yaman, C., Küçükağa, Y., Jaunich, M. K., & Demir, İ. (2017). Greenhouse gas contribution of municipal solid waste collection: A case study in the city of Istanbul, Turkey. Waste Management & Research: The Journal for a Sustainable Circular Economy, 36(2), 131–139. https://doi.org/10.1177/0734242x17744656
Kumar, U. (2019). Biosphere reserves of India: Issues of conservation and conflict. Journal of the Anthropological Survey of India, 68(1), 85–94. https://doi.org/10.1177/2277436x19845096
Laurance, W. F., Koh, L. P., Butler, R., Sodhi, N. S., Bradshaw, C. J. A., Neidel, J. D., … Mateo Vega, J. (2010). Improving the performance of the roundtable on sustainable palm oil for nature conservation. Conservation Biology, 24(2), 377–381. https://doi.org/10.1111/j.1523-1739.2010.01448.x
Li, M., & Wang, Q. (2017). Will technology advances alleviate climate change? Dual effects of technology change on aggregate carbon dioxide emissions. Energy for Sustainable Development, 41, 61–68. https://doi.org/10.1016/j.esd.2017.08.004
Li, R., & Jiang, R. (2018). Is carbon emission decline caused by economic decline? Empirical evidence from Russia. Energy & Environment, 30(4), 672–684. https://doi.org/10.1177/0958305x18802786
Luber, G., & McGeehin, M. (2008). Climate change and extreme heat events. American Journal of Preventive Medicine, 35(5), 429–435. https://doi.org/10.1016/j.amepre.2008.08.021
Maipas, S., Panayiotides, I. G., Tsiodras, S., & Kavantzas, N. (2021). COVID-19 pandemic and environmental health: effects and the immediate need for a concise risk analysis. Environmental Health Insights, 15. https://doi.org/10.1177/1178630221996352
Marshall, R.T. & Arbuckle, W.S. (1996). Ice Cream. 5th Edition, Chapman & Hall, New York.
Mubekti, M. (2013). Studi pewilayahan dalam rangka pengelolaan lahan gambut berkelanjutan di Provinsi Riau. Jurnal Sains Dan Teknologi Indonesia, 13(2), 88-94. https://doi.org/10.29122/jsti.v13i2.883
Muleya, E. (2020). Developmental social work and the sustainable development goals in south africa: opportunities and challenges. The International Journal of Community and Social Development, 2(4), 470–486. https://doi.org/10.1177/2516602620975226
Nadya, A., & Syafri, S. (2019). Analisis pengaruh faktor pertumbuhan ekonomi, pendidikan, dan pengangguran terhadap ketimpangan distribusi pendapatan di Indonesia. Media Ekonomi, 27(1), 37. https://doi.org/10.25105/me.v27i1.5300
Nizar, M. A. (2012). Dampak fluktuasi harga minyak dunia terhadap perekonomian Indonesia. Buletin Ilmiah Litbang Perdagangan, 6(2), 189-210. Retrieved from http://jurnal.kemendag.go.id/index.php/bilp/article/view/131
Perisai, R. A. (2020). Sawit dan lingkungan yang sakit: Perspektif analisis terhadap dampak negatif dalam pengelolaan perkebunan kelapa sawit di Indonesia. Retrieved from https://fh.unpad.ac.id/sawit-dan-lingkungan-yang-sakit-perspektif-analisis-terhadap-dampak-negatif-dalam-pengelolaan-perkebunan-kelapa-sawit-di-indonesia/
Purnomo, H., Okarda, B., Dermawan, A., Ilham, Q. P., Pacheco, P., Nurfatriani, F., & Suhendang, E. (2020). Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach. Forest Policy and Economics, 111, 102089. https://doi.org/10.1016/j.forpol.2020.102089
Qodri, L. A., Wulandari, D., & Sumarsono, H. (2020). Food stability analysis in East Java. International Journal of Scientific and Technology Research, 9(2), 3712–3716. Retrieved from https://scholar.google.com/citations?view_op=view_citation&hl=id&user=-Q37mlAAAAAJ&citation_for_view=-Q37mlAAAAAJ:Tyk-4Ss8FVUC
Rahmawati, T. (2020). Urbanisasi dan polemik penduduk kota di Indonesia. https://doi.org/10.31219/osf.io/z74gw
Reiley, M. (2018). Rekor tertinggi, ekspor minyak sawit 2017 tembus US$ 22,9 miliar. Retrieved from https://katadata.co.id/ekarina/berita/5e9a5609eb560/rekor-tertinggi-ekspor-minyak-sawit-2017-tembus-us-229-miliar
Ruggeri, M. (2019). Sustainable intensification in a forest-agriculture frontier landscape: Analysis of c capture and sequestration potential under two different scenarios in Binga district, Zimbabwe. Journal of Land and Rural Studies, 7(2), 169–194. https://doi.org/10.1177/2321024919844425
Science Daily. (2021). Palm oil: The carbon cost of deforestation. Retrieved from https://www.sciencedaily.com/releases/2018/06/180619123018.htm
Seo, H.-J., Kim, H., & Jeon, E.-C. (2019). Economic effects of the liquid biofuel industry in South Korea using input–output analysis. Energy & Environment, 31(3), 424–439. https://doi.org/10.1177/0958305x19874317
Shao, Q., Wang, X., Zhou, Q., & Balogh, L. (2019). Pollution haven hypothesis revisited: A comparison of the BRICS and MINT countries based on VECM approach. Journal of Cleaner Production, 227, 724–738. https://doi.org/10.1016/j.jclepro.2019.04.206
Sjogersten, S. (2020). Palm oil: Research shows that new plantations produce double the emissions of mature ones. The Conversation. Retrieved from https://theconversation.com/palm-oil-research-shows-that-new-plantations-produce-double-the-emissions-of-mature-ones-130330
Sommer, J. M., Restivo, M., & Shandra, J. M. (2019). India, palm oil, and ecologically unequal exchange: A cross-national analysis of forest loss. Sociological Perspectives, 63(2), 312–332. https://doi.org/10.1177/0731121419888645
Sorsa, V.-P., & Fougère, M. (2020). Toward political explanation of change in corporate responsibility: Political scholarship on CSR and the case of palm oil biofuels. Business & Society, 1-27. https://doi.org/10.1177/0007650320915919
Statistics Indonesia. (2021). Economic growth of Indonesia descend 2.07 percent (c-to-c). Retrieved from https://www.bps.go.id/pressrelease/2021/02/05/1811/ekonomi-indonesia-2020-turun-sebesar-2-07-persen--c-to-c-.html#:~:text=Ekonomi%20Indonesia%20triwulan%20IV%2D2020%20terhadap%20triwulan%20sebelumnya%20mengalami%20kontraksi,pengeluaran%2C%20pertumbuhan%20tertinggi%20dicapai%20oleh
Sulistyorini, A. (2020). From urbanization to ruralization. Monas, 2(1), 145–162. Retrieved from https://ejournal-bpsdm.jakarta.go.id/index.php/monas/article/view/38
Tjahjaprijadi, C. (2014). Dampak kenaikan harga minyak sawit internasional terhadap pertumbuhan ekonomi Indonesia. Retrieved from https://fiskal.kemenkeu.go.id/kajian/2014/06/26/072952456782406-dampak-kenaikan-harga-minyak-sawit-internasional-terhadap-pertumbuhan-ekonomi-indonesia
Union of Concerned Scientists. (2018). 2018 Annual Report. https://www.ucsusa.org/resources/2018-annual-report
United Nation. (2014). 2014 revision of the World Urbanization Prospects. Retrieved from https://www.un.org/en/development/desa/publications/2014-revision-world-urbanization-prospects.html
USDA. (2021). Oilseeds: World markets and trade. Retrieved from https://www.fas.usda.gov/data/oilseeds-world-markets-and-trade
Vijay, V., Pimm, S. L., Jenkins, C. N., & Smith, S. J. (2016). The impacts of oil palm on recent deforestation and biodiversity loss. PLOS ONE, 11(7). https://doi.org/10.1371/journal.pone.0159668
Wang, Z., Wei, W., Calderon, M., & Liao, X. (2018). Impacts of biofuel policy on the regional economy and carbon emission reduction in Yunnan, China. Energy & Environment, 30(5), 930–948. https://doi.org/10.1177/0958305x18813729
Wicke, B., Sikkema, R., Dornburg, V., & Faaij, A. (2011). Exploring land use changes and the role of palm oil production in Indonesia and Malaysia. Land Use Policy, 28(1), 193–206. https://doi.org/10.1016/j.landusepol.2010.06.001
Wulandari, D., Narmaditya, B. S., Prayitno, P. H., Ishak, S., Sahid, S., & Qodri, L. A. (2020). Nexus between production input and price commodity: An integration analysis of rice barns in east java of Indonesia. The Journal of Asian Finance, Economics and Business, 7(10), 451–459. https://doi.org/10.13106/jafeb.2020.vol7.no10.451
Xu, B., Zhong, R., & Qiao, H. (2020). The impact of biofuel consumption on CO2 emissions: A panel data analysis for seven selected G20 countries. Energy & Environment, 31(8), 1498–1514. https://doi.org/10.1177/0958305x20915426
Yang, L., & Li, Z. (2017). Technology advance and the carbon dioxide emission in China – Empirical research based on the rebound effect. Energy Policy, 101, 150–161. https://doi.org/10.1016/j.enpol.2016.11.020
Zeigler, R. S. (2019). Plant sciences, public policies, and food security. Outlook on Agriculture, 48(3), 220–228. https://doi.org/10.1177/0030727019868776
Zhang, R., Shen, G. Q., Ni, M., & Wong, J. (2019). The relationship between energy consumption and gross domestic product in Hong Kong (1992–2015): Evidence from sectoral analysis and implications on future energy policy. Energy & Environment, 31(2), 215–236. https://doi.org/10.1177/0958305x19854542
DOI: https://doi.org/10.18196/jerss.v5i2.12453
Refbacks
- There are currently no refbacks.
Office:
Redaksi Journal of Economics Research and Social Sciences, Gedung E2 Lantai 2, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Yogyakarta
Jalan Brawijaya, Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta 55183
Email: jerss@umy.ac.id
Telp: +62 812-3233-6697
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.