The effect of economic factors on the level of disasters that occur in the area of West Sumatra

Abstract

Environmental economics studies need to be developed nowadays, because they are increasingly aware of the scarcity of natural resources. Scarcity of natural resources can occur due to human activities in fulfilling their daily needs which sometimes over-consume natural resources. Humans are prioritizing more in economic growth targets, but ignore the consequences that occur during the process undertaken. Natural disasters are one of the consequent of the use of natural resources that do not pay attention to the sustainability of these old resources. Natural disasters that continue to occur will result in economic costs and scarcity of natural resources which ultimately threaten the sustainability of life. Complex empirical studies which link the impact of socio-economic variables of the many natural disasters that occur due to human activity is rare. This study aims to examine how the impact of socioeconomic variables on the level of disaster. Empirical studies using secondary data in the form of disaster data and macroeconomic indicators in the area of West Sumatra. The results of data processing using the generalized least squares model on models that affect the level of disasters due to the presence of macroeconomic factors are found as follows: the level of per capita income, labor force, number of industries. This study is expected to contribute to the study of environmental economics and macroeconomics.