Page 261 - Contributed Paper Session (CPS) - Volume 2

CPS1853 M. Irsyad Ilham
economic development activities often exclude residues that can pollute the
environment (Sutomo, 2016). In addition, population density considered as
one factor that will trigger environmental degradation. (Todaro and Smith,
2013) states that if population density and world income levels increase, the
net environment will continue to deteriorate in degradation. The population
problem is not only about the number, density, or migration but also the
quality of human life, namely poverty, backwardness, environmental
conditions, illness, and death. Due to environmental degradation issue, which
can be pictured from declining environmental quality, increase in total carbon
dioxide emission, destroying the forest, and water contamination (Vaclav Smil,
1996), many governments have engaged in addressing seriously and
prudently unless doomed disasters and tragedies. Therefore, analysing the
causal relationship between environmental degradation and several socio-
economic determinants has been a popular topic in the recent environmental
literature (Adams, 2008). This study analyse the environmental degradation in
Indonesia by a view from its Environmental Quality Index (EQI) by provinces.
This research use panel data in order to get more information about
environmental problems and discuss the factors that influenced
environmental degradation. Due to many factors, we considered defining
factors that triggered environmental degradation with economic
development, population density, and number of motor vehicles. This study is
expected to be a reference and evaluation of environmental degradation
issues in Indonesia along with several factors that affect it. If it turns out that
these factors actually proved significant in causing environmental
degradation, it is necessary to change the pattern of development towards the
development of more attention to environmental sustainability. This study
aims to: (1) describe environmental degradation, economic development,
population density, and number motor vehicle in Indonesia during 2011-2014,
and (2) examines the impact of economic development, population density,
and number of vehicles on environmental degradation in Indonesia during
2011-2014.

2. Methodology
This empirical study uses annual data on 31 provinces that located on six
bigger island in Indonesia (i.e. Sumatera, Java, Kalimantan, Sulawesi, Bali and
Nusa Tenggara, Maluku, and Papua) over the period 2011-2014. The variables
in this study include Indonesia’s environmental quality index (IEQI), gross
domestic regional product per capita (GDRPC), population density (POP), and
number of motor vehicles (MOTOR). Environmental quality index measured by
aggregation three aspect of environmental quality. Economic development,
measured as gross domestic regional product per capita, uses constant price
2010 in million rupiah. Population density, calculated by rationing between
number of populations and area, expressed by people per kilometer square.

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