The main objective of this study was to investigate the effect of income inequality on carbon dioxide (CO 2 ) emissions in Indonesia from 1975 to 2017 using the Autoregressive Distributed Lag (ARDL) technique. Per capita GDP, urbanization, and dependency ratio are included as additional variables in the analytical models. The statistical estimation and tests showed that income inequality has a negative effect on CO 2 emissions but the relationship pattern depends on the level of per capita GDP. An inverted U-shaped relationship was also observed between per capita GDP and CO 2 emissions. This indicates the existence of an Environmental Kuznets Curve (EKC) in Indonesia. Moreover, both urbanization and the dependency ratio have a negative effect on CO 2 emissions. This study suggests that income equality should be added to the policies formulated to aid economic growth in order to ensure that there is a reduction in CO 2 emissions.
<p align="center"> </p><p><strong>Abstrak</strong></p><p>Gangguan kesehatan merupakan salah satu dampak dari pencemaran udara yang pa-ling dirasakan di negara-negara berkembang. Penelitian ini bertujuan untuk mengestimasi dampak ekonomi dari pencemaran udara terhadap kesehatan di Indonesia menggunakan data tahun 2011. Indikator pencemaran udara yang digunakan adalah benda partikulat atau particulate matter 10 (PM10). Dampak ekonomi diukur oleh besarnya biaya yang dikeluarkan akibat terjadinya gangguan kesehatan manusia, yang terdiri dari mortalitas dan morbiditas.Teknik estimasi melibatkan dua pendekatan, yaitu epidemiologi untuk menilai hubungan sebab akibat antara tingkat konsentrasi PM10 dengan risiko kesehatan, dan valuasi ekonomi untuk memberikan nilai dalam satuan moneter terhadap risiko kesehatan tersebut. Hasil estimasi menunjukkan besarnya biaya ekonomi yang ditimbulkan oleh konsentrasi PM10 terhadap kesehatan senilai Rp 373,1 triliun atau setara dengan 5,03% Produk Domestik Bruto (PDB).Dari biaya tersebut, 60,9% adalah biaya mortalitas berupa kematian dini dan 39,1% adalah biaya morbiditas dengan komponen terbesar (sekitar 50%) berupa perawatan rumah sakit akibat penyakit pernapasan. Masyarakat harus menanggung biaya pencemaran rata-rata sekitar Rp 1,53 juta atau 6,7% dari pendapatan per kapita.</p><p><strong>Kata kunci</strong>: mortalitas, morbiditas, <em>dose-response</em>, <em>value of statistical life, cost of illness</em></p><p align="center"><strong> </strong></p><p><em><strong>Abstract</strong></em></p><p><em>This study aims to estimate the economic impact of air pollution on health in Indonesia. Air pollution indicator used is particulate matter matter 10 (PM<sub>10</sub>) which is considered as a good predictor of health with wider coverage compared to substances other air pollutants. The economic impact is measured by costs incurred due to the occurrence of human health problems, which consists of mortality and morbidity. Estimation technique involves two approaches, namely epidemiology to assess the causal relationship between the level of concentration of PM<sub>10</sub> with health risks, and economic valuation to provide monetary value on these health risks. In this study, the epidemiological approach uses dose-response function, while the economic valuation using the value of statistical life (VSL) for mortality and cost of illness (COI) for morbidity. The result indicates the economic costs caused by the concentration of PM<sub>10</sub> to the health are Rp 373.1 billion, equivalent to 5.03% of Gross Domestic Product (GDP). Of these costs, 60.9% is the cost of mortality in the form of premature death and 9.1% is morbidity which the largest component costs (approximately 50%) of hospital admission for respiratory causes. Society must bear the cost of pollution on average about Rp 1.53 million or 6.7% of per capita income</em></p><p><em><strong>Keywords:</strong> mortality, morbidity, dose-response, value of statistical life, cost of illness</em></p>
Economic development is basically a series of policy efforts that have the aim of increasing the standard of living of the people, directing income distribution, and expanding employment opportunities. In efforts to develop the economy, employment is still a major issue. This is due to inequality in getting job opportunities. The growth in the number of the workforce with progress in various economic sectors is not balanced. The research aimed to study the effect of gross regional domestic product (GRDP), provincial minimum wage (PMW), and inflation on the open unemployment rate in East Java province. The research used secondary data for the period 2006 - 2017 which consists of the value of GRDP, East Java PMW, East Java province inflation, and East Java province open unemployment rate. By applying regression using panel data regression analysis, the research results show that GRDP and Inflation has a negative and significant effect on the open unemployment rate in East Java. The PMW has a positive and significant effect on the open unemployment rate in East Java Province. Nevertheless, the research highlights effect relation and government policy instruments.
ASEAN is a region with high carbon dioxide (CO2) emissions, accompanied by an increase in population, gross domestic product (GDP) and energy consumption. Population, GDP, and energy consumption can be linked to CO2 emissions through an identity equation called the Rich Identity. This research is based on Kaya identity to describe CO2 emissions to calculate the impact of population, economic activity, energy intensity and carbon intensity on CO2 emissions in ASEAN and 8 ASEAN countries (i.e., Indonesia, Malaysia, Singapore, Thailand, Philippines, Vietnam, Myanmar and Brunei Darussalam) from 1990 to 2017. The method used is the Logarithmic Mean Division Index (LMDI). The data used are from the International Energy Agency (IEA) and the World Bank. Four effects measured and main findings showed that population, economic activity and carbon intensity factor increased by 293.02 MtCO2, 790.0 MtCO2, and 195.51 MtCO2, respectively. Meanwhile, energy intensity effect made ASEAN's CO2 emissions decrease by 283.13 MtCO2. Regarding contributions to the increase in CO2 emissions in all ASEAN countries, the population effect increases CO2 emissions in all countries in ASEAN and the economic activity effect is also the same, except in Brunei Darussalam which makes CO2 emissions in this country decreased by 1.07 MtCO2. Meanwhile, the effects of energy and carbon intensity are different. The effect of energy intensity causes CO2 emissions in lower-middle income countries to decrease, while in upper-middle and high-income countries, it increases carbon emissions. In contrast to the effect of carbon intensity, that actually makes CO2 emissions increase in lower-middle income countries and reduces carbon emissions in upper-middle and high-income countries.
The city of Surabaya has been voted as one of the pilot areas of mangrove forest conservation in ASEAN. Most of the mangrove forest area in the city of Surabaya spread across the East Coast (Pamurbaya). The purpose of this study is to estimate the total economic value of mangrove forests in the area as a source of information for planning and evaluation of conservation policy. The results of the valuation involving some valuation techiques, both market and non-market approaches, yield total economic value of about Rp 49.6 billion (US$ 3.8 million) per year, or 105.3 million (US$ 8,101.8) per ha per year. Almost all of these values is the use value, particularly direct use valule both extractive (timber and fisheries) and non extractive (outdoor recreation). Indirect use value which consists of abrasion barrier and carbon sinks contributed relatively small compared to the direct use value. Meanwhile, non-use value is the smallest contributors to the total economic value. This fact proves that the mangrove forest in Pamurbaya has economic benefits outweigh the ecological benefits.
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