GOVERNMENT SPENDING AND ENVIRONMENTAL QUALITY IN INDONESIA
Merri Anitasari, Muhammad Rusdi, Yesi Indian Ariska

Fakultass Ekonomi dan Bisnis Unib

Abstract

Purposes : This research aiming for to know and explain influence Government Expenditure, Economic Growth, GRDP, Income Per capita, HDI and Deforestation Rate to Environmental Quality Index in Indonesia.
Methods : Methods analysis used is analysis quantitative descriptive with panel data regression model using Fixed Effect Model from secondary data in the form of data on Government Expenditure, Economic Growth, GRDP at Constant Prices, Income Per capita, HDI, Deforestation Rate and Environmental Quality Index (IKLH) every years in 34 Provinces from 2015 to 2022 sourced from the Central Statistics Agency (BPS) and the Ministry of Environment.
Results: Research results show in a way simultaneous four independent variable have influence on Environmental Quality Index (IKLH) in Indonesia in 2015 - 2022. However, partially the variables of Government Expenditure and Economic Growth have a negative effect on the quality of the environment in Indonesia.
Conclusion and suggestion: The variables of Government Expenditure and Economic Growth have a significant negative effect on IKLH and the variables of PDRB and IPM have a positive and significant effect on IKLH . Meanwhile, the variables of Income Per Capita and Deforestation Rate do not have a significant effect towards IKLH. However, when a person^s quality of life and income increases, it will improve the environment because of the increase in the quality of human resources in Indonesia so that they are more concerned and maintain environmental sustainability. It is hoped that the government can make improvements quality of human resources, and increasing GRDP but taking into account the environmental impact and sustainability of the green economy in Indonesia.

Keywords: Government Expenditure, Economic Growth , GRDP, Index Quality Environment Life

Topic: Public economics