Page 267 - Contributed Paper Session (CPS) - Volume 2

CPS1853 M. Irsyad Ilham
In addition, increasing number of motor vehicles indicates high
combustion that produce pollutant dangerous gas. Whereas there's not
development eco-friendly motor combustion machine or changing public
behaviour to use public transportation it will leads to be high pollute in the
air. This condition will make environmental degradation of air. The result from
panel regression infer that by five percent significance level, the environmental
quality index of Indonesia will decrease by 0.04 percent when number of
vehicles increased by one percent, ceteris paribus. The result also supported
by research from Sadullah (2003), Zainordin, Ramli, Sulaiman, dan Awang
(2014), Andong and Sajor (2015).
The effect distinction of individual Cases from each provinces can be
identified by random effect model if all independent variables has the same
value or constant. Based on estimation result Banten is the province which has
the smallest individual effect. It means that when economic growth,
population density, and number of vehicles in all Indonesian provinces is
constant so Banten will has the lowest environmental quality index.

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