INCOME INEQUALITY AND ENVIRONMENTALLY INCLUSIVE DEVELOPMENT: AN EMPIRICAL STUDY IN INDONESIA
Sri Rahayu Budi Hastuti, Akhmad Syariudin, Tugiyo, Talitha Dhea Ramadhany

Faculty of Economics and Business UPN Veteran Yogyakarta

Abstract

Development and the environment are two parts that support each other and cannot be separated, because there will be no development in human life if there is no environment that supports the realization of the development. Sustainable development is seen as an alternative development that tries to bridge the developmentalist or environmentalist paradigm. This study aims to analyze the relationship between income inequality, inclusive economic development, and environmental quality. Based on the results of the panel data regression analysis of 34 provinces in Indonesia, it shows that income inequality and inclusive economic development negatively influence each other. Inclusive economic development reduces income inequality, conversely, lower income inequality encourages more inclusive economic development.

Keywords: Income Inequality, Environment, Inclusive Development, Sustainable Development

Topic: Social Science