Fiscal Policy, Urbanization and Education : Analysis of EKC Porvinsi in Indonesia.

Abstract

This study investigated the EKC hypothesis for Total Suspensed Solid (TSS) and Fecal Coli (FCOLI) pollutants in Indonesia with a quadratic model and several control variables (fiscal policy for natural resources revenue sharing, foreign investment, urbanization and education). Using a pool data of 33 provinces in 2011-2014. The results of the study support the EKC hypothesis significantly for TSS pollutants and not significant for FCOLI pollutants. Foreign investment, urbanization and education tend to increase pollutants even though they are not significant. Fiscal policy is significant for reducing TSS pollutants but does not apply to FCOLI pollutants. The government must increase inclusive green growth and environmental competencies in education.