Abstract
Economic development as a process of improving people's welfare in a country can also lead the declining of the environment quality. The degradation of the environment can be caused by the energy consumption required in the development process, as well as pollution. The main purpose of this study is to analyze empirically the impact of energy consumption and economic growth toward environmental quality which is measured by environmental quality index. This study employs the econometric model of panel data of 34 provinces in Indonesia along 2011-2016. The study finds the long-term relationship between energy consumption and economic growth on environmental quality in Indonesia.
Highlights
In recent decades, economic growth became the last resort of each country and considered as one and only sustainable development
As the economy progresses and develops, development is followed by ecological problems
There is a tradeoff, especially in developing and poor countries, that development in addition to the effect on economic growth will cause environmental damage. This is due to the development process that is still concentrated in the primary sector, the industrialization with the energy needs of potentially high pollutants, while the technology used is not environmentally friendly
Summary
Economic growth became the last resort of each country and considered as one and only sustainable development. Energy has been considered as the motor of economic progress. Economic growth can put so much pressure on environment, through energy consumption as transmission line. This gives impact on the contradiction of national economic growth and economic growth policy which was adopted by environment goals. A huge challenge to mediate between economic growth and environmental issue. This becomes interesting and most important on sustainable economic development when ecology and environmental issue is brought to the development debate because it includes welfare of all generations
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