Open AccessAnalysis of government expenditure and environmental quality: an empirical study using provincial data levels in Indonesia
Author(s) -
Shanty Oktavilia,
Andryan Setyadharma,
Indah Fajarini Sri Wahyuningrum,
Nestya Arum Damayanti
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/623/1/012071
Subject(s) - panel data , decentralization , aggregate expenditure , index (typography) , environmental quality , economics , quality (philosophy) , government (linguistics) , delegation , regression analysis , fixed effects model , government expenditure , aggregate data , public economics , business , econometrics , macroeconomics , public finance , political science , statistics , philosophy , linguistics , mathematics , management , epistemology , world wide web , computer science , law , market economy
The improvement of environmental quality is expected to increase along with the delegation of financial management authority to regional governments by the decentralization policy. The policy is expected to affect the handling of environmental problems in the regions. This study analyzes the influence of regional government expenditure variables and aggregate economie output variables at the regional level on environmental quality. This study uses cross-section data of 33 provinces in Indonesia in the period 2013-2018. Empirical studies were analyzed using panel data regression models. The results show that government expenditure has a positive and significant effect on the environmental quality index. The economie aggregate output variable has a positive and significant effect on the environmental quality index in Indonesia. This may imply that a rise in the quality of Indonesia’s environment is indicated by economie growth through a surge in aggregate economie output.