Several variables affecting provincial Air Quality Index (AQI) in Indonesia 2012 – 2019

Abstract

The purpose of this study is to determine and analyze several variables that affect the Air Quality Index (AQI) in Indonesia in 2012 – 2019. The data used in this study is secondary data in the form of panel data related to the variables of AQI, circular economy, and digital economy in 34 provinces in Indonesia in the period 2012 – 2019. The secondary data used were retrieved from the Ministry of Environment and Forestry (KLHK), the Central Statistics Agency (BPS) and the Provincial Sanitation Office (DKK) in Indonesia. The analytical tool used in this research is static panel data econometrics. The results showed that the circular economy variables in the dimensions of water resource efficiency by industry, waste treatment, and waste production have a significant effect on improving air quality in Indonesia. Meanwhile, the circular economy variables in the dimensions of coal and water resource use efficiency by the population have not been able to support the improvement of air quality in Indonesia. Furthermore, it was found that the variables indicating the application of the digital economy also had a significant effect on improving air quality in Indonesia. The results of this study are expected to be a reference for the community, policy makers, and academics in responding to the importance of maintaining the momentum of economic activity expansion along with maintaining regional air quality through new economic approaches.