The Relation of Environmental Quality and Fishery Sector in Indonesia

Abstract

The condition of fishery sector is currently stagnating, even tending to decline, which is indicated by the decrease of production in some areas in Indonesia. Environmental degradation in marine waters is due to global climate change and uncontrolled fish exploitation impact on the decline of marine fisheries production. While in aquaculture, the environmental quality is also indicated to influence the production. Nevertheless, the increase of production of both marine and terrestrial fisheries has an effect on the quality of the environment. This study aims to analyze the interrelationship between the influence of environmental quality on the production of fishery sub-sector and the influence of fishery subsector production on environmental quality. This research employs environmental quality data and output of fishery of 34 provinces in Indonesia during 2011-2015. The study finds that output of fishery sector affects the environmental quality, which proves the Environment Kuznets Curve in the fishery sector in Indonesia. Since a certain threshold is achieved, the increase in revenue followed by the increase in environmental quality. The study also finds that the environmental quality has a positive effect on the production of fishery. Implication of the study is the increase of income of fishery households can be encouraged the ability of the community to protect the environment and increases the willingness of households to sacrifice other goods to environmental protection.