Industrial Sector and Natural Resource Sharing: Analysis of Environmental Quality Provincial in Indonesia
Abstract
This study investigated the pattern of economic growth (GRDP), the impact of
industrial development (INDUS) and the transfer of natural resources revenue
sharing (SHRNAT) to the environment quality (EQIT) of the province throughout
Indonesia. Using the EKC quadratic model with control of variables, industrial sector
and natural resource profit sharing, using the Fixed and Random Effect methods.
Use data pool of 33 provinces in the 2011-2015 period. The results of the
investigation explained that. The economic growth pattern of the EKC model applies
significantly both with industry control variables and profit sharing funds. Partially
the industrial sector (INDUS) increases degradation or decreases the quality of the
environment insignificantly, as well as profit sharing funds (SHRNAT) that give the
same effect. The government must continue to encourage the re-newable industrial
sector and increase environmental improvement investments in all provinces.