Analysis of GDP Per Capita, Population Density, and Number of Motor Vehicles on Environmental Quality in Indonesia

Authors

  • Nisrina Atikah University of North Sumatera
  • Ramli University of North Sumatera
  • Arif Rahman University of North Sumatera

DOI:

https://doi.org/10.47134/jobm.v3i3.187

Keywords:

GDP per capita, Population density, Motor vehicles, Environmental quality, Spatial regression

Abstract

Environmental quality is a critical issue faced by developing economies like Indonesia, which heavily rely on natural resource exploitation. This study analyzes the influence of GDP per capita, population density, and number of motor vehicles on environmental quality in Indonesia during 2012-2023. The research employs a descriptive quantitative approach using spatial panel data regression models. The Environmental Quality Index (ELI) serves as the dependent variable, while GDP per capita, population density, and number of motor vehicles constitute the independent variables. Secondary data were collected from the Central Statistics Agency (BPS) and the Ministry of Environment and Forestry. Results indicate that GDP per capita has a positive but insignificant effect on environmental quality (coefficient = 0.003737, p > 0.05). Population density exhibits a significant negative effect (coefficient = -0.073323, p < 0.05), and the number of motor vehicles shows a negative but insignificant effect (coefficient = -0.004381, p > 0.05). The Geographically Weighted Regression (GWR) analysis reveals spatial heterogeneity across provinces, with R-squared improving from 0.53 (global regression) to 0.81 (GWR model). These findings suggest that environmental quality determinants vary across regions, necessitating localized policy interventions for sustainable development.

References

Alam, M. M., Murad, M. W., Noman, A. H. M., & Ozturk, I. (2013). Relationships between carbon emissions, economic growth, energy consumption and population growth: Testing Environmental Kuznets Curve hypothesis for Brazil, China, India and Indonesia. Ecological Indicators, 70, 466-479. doi:10.1016/j.ecolind.2016.06.043

Arifin, B. (2002). Resource and environmental economics. Jakarta: University of Indonesia Press.

Baltagi, B. H. (2008). Econometric analysis of panel data (4th ed.). West Sussex: John Wiley & Sons.

Damayanti, R., & Chamid, M. S. (2018). Environmental pollution in Indonesia uses the Geographically Weighted Regression (GWR) approach. ITS Journal of Science and Arts, 7(1), 23-28. doi:10.12962/j23373520.v7i1.28049

Daryanto, H. (2013). Environmental management. Yogyakarta: Gava Media.

Effendi, S. (2016). Sustainable development. Jakarta: Rajawali Press.

Ehrlich, P. R. (1968). The population bomb. New York: Ballantine Books.

Fachrudin, H. T. (2018). Analysis of the influence of economic growth on environmental degradation in Indonesia. Indonesian Journal of Economics and Development, 18(2), 151-168.

Ghani, E. K., & Sunarko, B. (2016). Natural resources and economic development in Indonesia. Journal of Indonesian Economy and Business, 31(2), 189-207.

Gupito, K., Aji, P. M., & Magaji, N. (2013). The relationship of GDP per capita from the industrial, transportation, agriculture and forestry sectors to environmental quality is measured from CO₂ emissions. Economics Development Analysis Journal, 2(4), 368-379.

Gujarati, D. N. (2004). Basic econometrics (4th ed.). New York: McGraw-Hill.

Hardini, S. (2013). Analysis of the relationship between population growth, poverty, and economic growth on environmental quality in Semarang City. Journal of Economics, 2(1), 45-58.

Harrington, W., McConnell, V., & Ando, A. (2003). Are vehicle emission inspection programs living up to expectations? Washington DC: Resources for the Future.

Hung, M. F., & Shaw, D. (2006). Economic growth and the environmental Kuznets curve in Taiwan: A simultaneity model analysis. Inha Journal of Economic Theory & Econometrics, 37(1), 1434-1455.

Idris, M. (2012). Environmental quality index as an indicator of sustainable development. Journal of Environmental Technology, 13(2), 152-160.

Inogouchi, T., Newman, E., & Keane, J. (2003). The changing nature of democracy. Tokyo: United Nations University Press.

Irawan, D. E., Puradimaja, D. J., & Notosiswoyo, S. (2016). Decreasing groundwater quality at Cisadane riverbanks: Groundwater-surface water approach. Geological and Mining Research, 26(1), 43-52. doi:10.14203/researchgeotam2016.v26.213

Ismawan, I. (1999). Development economics. Jakarta: Publishing Institution, Faculty of Economics, University of Indonesia.

Kadir, A. (2006). Transportation: Its role and impact in national economic growth. Jakarta: Bumi Aksara.

Karim, M., Saturi, S., & Novriansyah, A. (2013). Preparation of environmental quality index in Central Kalimantan. Journal of Tropical Forests, 1(2), 144-151.

Kartodihardjo, H. (2017). Indonesia's Environmental Quality Index 2016. Jakarta: Ministry of Environment and Forestry.

Ministry of Environment and Forestry of the Republic of Indonesia. (2021). Indonesia's Environmental Quality Index 2020. Jakarta: Ministry of Environment and Forestry.

Ministry of Environment and Forestry of the Republic of Indonesia. (2024). Indonesia's environmental quality index 2023. Jakarta: Ministry of Environment and Forestry.

Kojima, M. (2007). Deforestation, forest degradation, and Indonesian economic crisis. Washington DC: World Bank.

Kristanto, P. (2013). Industrial ecology (2nd ed.). Yogyakarta: Andi Offset.

Kusminingrum, N., & Gunawan, G. (2008). Air pollution due to motor vehicle activities on urban roads on the islands of Java and Bali. Journal of Roads and Bridges, 25(2), 127-140.

Kuswantoro, H. (2009). Analysis of the influence of agricultural productivity on environmental deforestation. Journal of Development Economics, 10(1), 89-104.

Lee, C. C. (1978). Models in planning: An introduction to the use of quantitative models in planning. Oxford: Pergamon Press.

Lubis, Z. (1992). Forests in a socio-cultural perspective. Jakarta: Yayasan Obor Indonesia.

Mankiw, N. G. (2007). Macroeconomics (6th ed.). Jakarta: Erlangga.

Mantra, I. B. (2007). General Demography (2nd ed.). Yogyakarta: Student Library.

Mantra, I. B. (2014). Demographics and population. Yogyakarta: Student Library.

Martono, D. N., Koestoer, R. A., & Rahardjo, N. (2004). The condition of nitrogen oxide gas pollution in the air in Jakarta is at zero meters and 120 meters from the highway. Journal of Environmental Technology, 5(2), 103-110.

Nafziger, E. W. (2012). Economic development (5th ed.). Cambridge: Cambridge University Press.

Nur, M. (2015). Analysis of factors affecting GDP per capita in Indonesia. Journal of Economics and Development Studies, 16(2), 183-192.

Panayotou, T. (2003). Economic growth and the environment. Economic Survey of Europe, 2, 45-72.

Paudel, K. P., Zapata, H., & Susanto, D. (2013). Environmental Kuznets Curve for water pollution: The case of border countries. Applied Economics, 45(3), 3397-3408. doi:10.1080/00036846.2012.714074

Pezzey, J. (1992). Sustainable development concepts: An economic analysis. World Bank Environment Paper, 2, 1-70.

Pykh, Y. A., Kennedy, E. T., & Grant, W. E. (2000). An overview of systems analysis methods in delineating environmental quality indices. Ecological Modelling, 130(1-3), 25-38. doi:10.1016/S0304-3800(00)00201-5

Qodriyatun, S. N. (2016). Indonesia's environmental quality index in 2013-2015. Social Welfare Brief, 8(19), 13-16.

Rahajeng, A. (2021). Analysis of economic growth and environmental quality in Indonesia. Journal of Development Economics, 19(1), 67-84.

Rajagukguk, E. (2015). Analysis of the influence of the number of vehicles on CO₂ emissions in Indonesia. Journal of Economics and Public Policy, 6(2), 149-163.

Ray, D. K., Ramankutty, N., Mueller, N. D., West, P. C., & Foley, J. A. (2011). Recent patterns of crop yield growth and stagnation. Nature Communications, 3, 1293. doi:10.1038/ncomms2296

Rodrigue, J. P. (2017). The geography of transport systems (4th ed.). New York: Routledge.

Rosyidi, S. (1995). Introduction to economic theory. Jakarta: Rajawali Press.

Rostow, W. W. (1960). The stages of economic growth: A non-communist manifesto. Cambridge: Cambridge University Press.

Sadullah, A. F., Huda, M. N., & Fuller. (2003). The effect of traffic flow on carbon monoxide and sulfur dioxide concentrations. Journal of Civil Engineering, 10(2), 89-98.

Sanusi, B. (2003). Population and the environment. Jakarta: Open University.

Sugiyono. (2012). Quantitative, qualitative, and R&D research methods. Bandung: Alfabeta.

Suhadi, A. (2005). The impact of the transportation sector on the environment. Journal of Transportation, 5(1), 23-34.

Sutjipto, H. (2008). The impact of environmental pollution on health. Jakarta: Rineka Cipta.

Sutomo, H. (2016). Environmental economics: Theory and applications. Yogyakarta: Student Library.

Syech, R., Purnama, H., & Rahman, A. (2014). Air quality analysis in the city of Pekanbaru. Journal of Environmental Science, 8(1), 56-68.

Thomas, V., Dailami, M., Dhareshwar, A., Kaufmann, D., Kishor, N., Lopez, R., & Wang, Y. (2001). The quality of growth. Washington DC: World Bank.

Todaro, M. P., & Smith, S. C. (2014). Economic development (12th ed.). Boston: Pearson.

Walpole, R. E. (2005). Introduction to statistics (3rd ed.). Jakarta: Gramedia Pustaka Utama.

Warren, C., & McCarthy, J. F. (2009). Community, environment and local governance in Indonesia: Locating the commonweal. London: Routledge.

Zainordin, N. S., Abdullah, S., & Ismail, M. (2014). The influence of traffic on ozone and nitrogen dioxide concentrations. Asian Journal of Atmospheric Environment, 8(2), 65-76. doi:10.5572/ajae.2014.8.2.065

Downloads

Published

2026-02-15

How to Cite

Atikah, N., Ramli, & Rahman, A. (2026). Analysis of GDP Per Capita, Population Density, and Number of Motor Vehicles on Environmental Quality in Indonesia. Journal of Business Management, 3(3), 254–259. https://doi.org/10.47134/jobm.v3i3.187

Issue

Section

Articles