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.