Page 266 - Contributed Paper Session (CPS) - Volume 2

CPS1853 M. Irsyad Ilham
Gorontalo 0.047408 Papua 0.038041
Jambi -0.035125 Riau -0.13799
West Java -0.070697 South Sulawesi 0.041691
Central Java 0.133403 Central Sulawesi 0.128072
East Java 0.114054 Southeast 0.048738
Sulawesi
West -0.020404 North Sulawesi 0.028231
Kalimantan
South -0.112617 West Sumatera 0.073993
Kalimantan
Central -0.057693 South Sumatera -0.06938
Kalimantan
R-squared 0.459677
Adjusted R-squared 0.446169

F-statistic 34.02983

Prob(F-statistic) 0.0000

4. Discussion and Conclusion
According to the model, the value of adjusted R-Square is 0.45 that can be
interpreted that the variable economic development (GDRP per
capita/GDRPC), population density (DEN), and the number of vehicles (NV) is
able to explain the variation in environmental degradation (EQI) about 45
percent while the rest is affected by the other variables outside the model.
Moreover, normality test in Table 2 shows that the error' followed normal
distribution. Besides, multi-collinearity check-in from the model shows that
the relationship between independent variables relative more safe from multi-
collinearity. Therefore, environmental degradation model has full-filled the
required assumptions. This condition indicate that the model is relatively
accurate and be used for analysis.
Estimation result shows that by five percent significance level, when GRDP
per capita increase by one percent, environmental quality of Indonesia's
provinces will leads to decrease by 0.06 percent, ceteris paribus. The result on
line with Kuznets hypothesis on EKC that economic activity in early
development progress tend to decline natural quality. Moreover, the research
by Paudel and Pandit (2013) also explain that income per capita has positive
impact on environmental degradation in a county.
Another factor is population density. Estimation result point out with five
percent significance level the increase of population density by one percent
will decrease environmental quality index by 0.07 percent, ceteris paribus. The
result has equal with some literatures, such as Abesamis et al. (2013), Alam
(2010) and Rahman (2017).

255 | I S I W S C 2 0 1 9