FINANCE : International Journal Of Management Finance
Vol. 3 No. 3 (2026): March

ECONOMIC GROWTH EFFECT ON ENVIRONMENTAL POLLUTION IN INDONESIA

Normanda Eka Shakti (Unknown)
Prayudi Setiawan Prabowo (Unknown)



Article Info

Publish Date
23 Feb 2026

Abstract

This study examines the impact of economic growth on environmental pollution across Indonesia's provinces, utilizing Gross Regional Domestic Product (GRDP) at current market prices as the primary economic indicator and population density as a control variable. Employing a quantitative approach with cross-sectional secondary data from Indonesia's Central Statistics Agency (BPS), the research conducts multivariate regression analysis on data from all 34 provinces. Comprehensive diagnostic tests, including assessments of normality, multicollinearity, autocorrelation, and model specification, were performed to validate the statistical model. The findings reveal that both GRDP and population density exert statistically significant positive effects on environmental pollution, though the magnitude of these effects is relatively modest. The model explains approximately 44.35% of the variation in environmental pollution, suggesting that additional factors beyond economic and demographic variables contribute substantially to pollution dynamics. This research provides contemporary empirical support for the Environmental Kuznets Curve (EKC) hypothesis in the Indonesian context, emphasizing the necessity for integrated policy approaches that balance economic development with environmental sustainability.

Copyrights © 2026






Journal Info

Abbrev

finance

Publisher

Subject

Economics, Econometrics & Finance

Description

FINANCE : International Journal Of Management Finance: We are rummaging around the web for progressive and clairvoyant minds for this exponential journal to focus upon various components of management, accounting, trade, marketing, finance, economy, and behavioral study. This search can reach a ...