Abstract
The role of business in advancing the economy and welfare is highly expected in the community. In the development of a business that occurs, it often sacrifices non-profit aspects, such as the environment. The indirect impact that can arise from business development is climate change. This study uses climate data and the number of industrial enterprises by type at the village level, to determine the effect of business on the climate that occurs. This study uses ordinary least square, to determine the role of each independent variable. The results of this study indicate that an increase in 1,000 of these types of businesses will result in an increase in temperature of 1 oC. Furthermore, an increase in 1,000 types of business will reduce rainfall by 11 to 64 mm. Government and community efforts are needed to maintain climatic conditions for the sustainability of the ecosystem.
Highlights
The distribution of business in Indonesia is dominated by the real business sector
This study aims to determine the role of business in influencing climate conditions that occur in Indonesia
The results of this study indicate that an increase in 1,000 of these types of businesses will result in an increase in temperature of 1 oC
Summary
The distribution of business in Indonesia is dominated by the real business sector. This domination causes the absorption of labor and at the same time advances the country's economy. Based on data from the 2016 Economic Census, it is known that. Indonesia has more than 26 million businesses. This business sector has absorbed more than 78 million people, so that on average each business can absorb 3 people. Existing businesses in Indonesia contribute positively to the level of people's welfare.
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