Open AccessThe Relationship between Air Pollution, Economic Growth, and Life Expectancy: Empirical Evidence from Indonesia
Author(s) -
Abdul Bashir,
Liliana Liliana,
Ariodillah Hidayat,
Suhel Suhel
Publication year - 2022
Publication title -
signifikan
Language(s) - English
Resource type - Journals
eISSN - 2476-9223
pISSN - 2087-2046
DOI - 10.15408/sjie.v11i1.23334
Subject(s) - life expectancy , distributed lag , cointegration , expectancy theory , granger causality , empirical evidence , econometrics , economics , pollution , causality (physics) , demography , biology , ecology , sociology , population , philosophy , physics , management , epistemology , quantum mechanics
This study investigates the relationship between air pollution, economicgrowth, and life expectancy in Indonesia. The observation periodduring 1985-2019 used time-series data obtained from the WorldBank. Quantitative approach by applying two main models, namelythe autoregressive distributed lag (ARDL) model by considering theeffect of time-lapse and Granger causality with vector error correctionmethod. Research findings prove that air pollution has a negativeand significant effect on life expectancy in the long run. Economicgrowth has a positive and significant effect on life expectancy. In theshort run, the current life expectancy is positively and significantlyinfluenced by the life expectancy of the previous period. Air pollutionhas a negative and significant effect on life expectancy, and economicgrowth has a negative and significant effect on life expectancy. Anotherfinding in the Granger causality model is a two-way relationshipbetween air pollution and life expectancy. Other evidence exists of atwo-way relationship between economic growth and air pollution. Inaddition, evidence of a unidirectional relationship of economic growthwith life expectancy in the short run. The cointegration equationshows evidence of a long-run relationship between air pollution,economic growth, and life expectancy.