The Relationship between Poverty and Environmental Damage in Indonesia: A VECM Analysis
This study investigates the relationship between poverty and environmental damage in Indonesia. This study consists time series data covering the period from 2000 to 2023, and utilized the vector error correction model. The short-run findings reveal that economic inequality exacerbates CO2 emission...
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Jurusan Ekonomi Pembangunan Fakultas Ekonomi Universitas Sriwijaya
2025-06-01
|
| Series: | Jurnal Ekonomi Pembangunan |
| Subjects: | |
| Online Access: | https://jep.ejournal.unsri.ac.id/index.php/jep/article/view/23254 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849424127487639552 |
|---|---|
| author | Setyo Tri Wahyudi Nurul Badriyah Rihana Sofie Nabella Kartika Sari Amalia Rahmawati |
| author_facet | Setyo Tri Wahyudi Nurul Badriyah Rihana Sofie Nabella Kartika Sari Amalia Rahmawati |
| author_sort | Setyo Tri Wahyudi |
| collection | DOAJ |
| description |
This study investigates the relationship between poverty and environmental damage in Indonesia. This study consists time series data covering the period from 2000 to 2023, and utilized the vector error correction model. The short-run findings reveal that economic inequality exacerbates CO2 emissions, as affluent groups exploit resources and disadvantaged community resort to unsustainable practices. This is compounded by political and economic power weakening environmental regulations. Conversely, CO2 emissions exacerbate poverty, especially in rural areas reliant on natural resources, making them vulnerable to environmental shocks. A strong positive correlation exists between ecological footprint per capita and CO2 emissions, driven by resource consumption and fossil fuel reliance, though renewable energy adoption shows promise in mitigating emissions. In the long run, our findings align with the Environmental Kuznets Curve theory, suggesting that economic growth, supported by clean energy and sound environmental policies, ultimately leads to reduced environmental impact. These findings underscore the critical need for balanced strategies that simultaneously address poverty alleviation and promote ecological sustainability through inclusive policies and a transition to renewable energy.
|
| format | Article |
| id | doaj-art-aa2b3f0f8d6c4ee5917c4e626ad86add |
| institution | Kabale University |
| issn | 1829-5843 2685-0788 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Jurusan Ekonomi Pembangunan Fakultas Ekonomi Universitas Sriwijaya |
| record_format | Article |
| series | Jurnal Ekonomi Pembangunan |
| spelling | doaj-art-aa2b3f0f8d6c4ee5917c4e626ad86add2025-08-20T03:30:19ZengJurusan Ekonomi Pembangunan Fakultas Ekonomi Universitas SriwijayaJurnal Ekonomi Pembangunan1829-58432685-07882025-06-0123110.29259/jep.v23i1.23254The Relationship between Poverty and Environmental Damage in Indonesia: A VECM AnalysisSetyo Tri Wahyudi0https://orcid.org/0000-0003-4779-5747Nurul Badriyah1https://orcid.org/0000-0002-6246-7349Rihana Sofie Nabella2https://orcid.org/0000-0003-3943-9240Kartika Sari3https://orcid.org/0000-0002-5688-2394Amalia Rahmawati4Department of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, Indonesia This study investigates the relationship between poverty and environmental damage in Indonesia. This study consists time series data covering the period from 2000 to 2023, and utilized the vector error correction model. The short-run findings reveal that economic inequality exacerbates CO2 emissions, as affluent groups exploit resources and disadvantaged community resort to unsustainable practices. This is compounded by political and economic power weakening environmental regulations. Conversely, CO2 emissions exacerbate poverty, especially in rural areas reliant on natural resources, making them vulnerable to environmental shocks. A strong positive correlation exists between ecological footprint per capita and CO2 emissions, driven by resource consumption and fossil fuel reliance, though renewable energy adoption shows promise in mitigating emissions. In the long run, our findings align with the Environmental Kuznets Curve theory, suggesting that economic growth, supported by clean energy and sound environmental policies, ultimately leads to reduced environmental impact. These findings underscore the critical need for balanced strategies that simultaneously address poverty alleviation and promote ecological sustainability through inclusive policies and a transition to renewable energy. https://jep.ejournal.unsri.ac.id/index.php/jep/article/view/23254PovertyEnvironmental damageSustainable economic |
| spellingShingle | Setyo Tri Wahyudi Nurul Badriyah Rihana Sofie Nabella Kartika Sari Amalia Rahmawati The Relationship between Poverty and Environmental Damage in Indonesia: A VECM Analysis Jurnal Ekonomi Pembangunan Poverty Environmental damage Sustainable economic |
| title | The Relationship between Poverty and Environmental Damage in Indonesia: A VECM Analysis |
| title_full | The Relationship between Poverty and Environmental Damage in Indonesia: A VECM Analysis |
| title_fullStr | The Relationship between Poverty and Environmental Damage in Indonesia: A VECM Analysis |
| title_full_unstemmed | The Relationship between Poverty and Environmental Damage in Indonesia: A VECM Analysis |
| title_short | The Relationship between Poverty and Environmental Damage in Indonesia: A VECM Analysis |
| title_sort | relationship between poverty and environmental damage in indonesia a vecm analysis |
| topic | Poverty Environmental damage Sustainable economic |
| url | https://jep.ejournal.unsri.ac.id/index.php/jep/article/view/23254 |
| work_keys_str_mv | AT setyotriwahyudi therelationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT nurulbadriyah therelationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT rihanasofienabella therelationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT kartikasari therelationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT amaliarahmawati therelationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT setyotriwahyudi relationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT nurulbadriyah relationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT rihanasofienabella relationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT kartikasari relationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis AT amaliarahmawati relationshipbetweenpovertyandenvironmentaldamageinindonesiaavecmanalysis |