TURNITIN-PRIYAGUS (Industrial Sector and Natural Resource Sharing: Analysis of Environmental Quality in Indonesia)

Abstract

This study aims to investigate the relationship between economic growth (GRDP), industrial sector (INDUS) and the transfer of natural resource revenue sharing (SHRNAT) to environmental quality (EQIT) or Degradation in Indonesia in the 2011-2015 period. The econometric analysis model was built using panel data on 33 provinces with a static squared regression method. The results of the investigation support the Environmental Kuznet Curve (EKC) hypothesis significantly, where economic growth and environmental quality (Degradation) are related to the inverse U pattern. It means, in the initial stages, economic growth will reduce the quality of the environment to a certain point then the quality of the environment will improve along with the increase in economic growth, while an increase in industrial sector as well as the transfer of funds for the production of natural resources will have an impact on the reduction of environmental quality. Growth strategies with industry and natural resource revenue sharing policies in Indonesia have an impact on reducing environmental quality