Abstract
Economic development in a country is indicated by an increase in the number of industrial sectors and other supporting facilities such as transportation. However, there is another impact on developments industrial sectors and transportation, especially environmental degradation. Air pollution is one of the environmental degradation. This research was conducted to determine the short-term and long-term environmental impact of industry and transport in Indonesia. The data analysis method in this research used Autoregressive Distribution Lag (ARDL) to see the short-term and long-term effects between research variables. The data used are data on CO2 emissions, the amount of industries and transport in Indonesia from 1965 - 2018. The results showed that the industry had a negative impact on increasing CO2 emissions in the short and long term. Meanwhile, transportation has a positive impact in the short term and a negative impact in the long term.
Highlights
Economic sector development is an important thing that must be carried out in a sustainable manner by a country (Helda et al, 2018)
Air pollution is indicated by carbon dioxide (CO2) emissions, which mostly come from industry, household activities and the transport sector (Gupito & Kodoatie, 2012)
The analysis found that the industrial sector has a negative impact, which means that in the long term, the industrial world will potentially reduce the environmental degradation by CO2 emission
Summary
Economic sector development is an important thing that must be carried out in a sustainable manner by a country (Helda et al, 2018). The existence of the industrial sectors in Indonesia encourages an acceleration of economic growth, since the industrial sector can provide employment and generate changes in people’s social life (Nurkolis, 2015). There is another impact on the development of the industrial sector, that is an occurrence of environmental degradation, because the industrial sector can produce toxic materials that can pollute the environment (Supraptini, 2002). Air pollution is indicated by carbon dioxide (CO2) emissions, which mostly come from industry, household activities and the transport sector (Gupito & Kodoatie, 2012)
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