Economic Growth and Environmental Quality in Java and Sumatra: A Panel Data Analysis of GRDP, Population Density, and Poverty

Setyawati, Anita and Hariadi, Sugeng (2026) Economic Growth and Environmental Quality in Java and Sumatra: A Panel Data Analysis of GRDP, Population Density, and Poverty. International Journal of Economics, Business and Innovation Research, 5 (3). ISSN 2964-0865

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Official URL / DOI: https://e-journal.citakonsultindo.or.id/index.php/...

Abstract

Environmental quality is a key indicator of sustainable development, yet the impacts of economic growth, population density, and poverty remain inconclusive. This study examines the effects of Gross Regional Domestic Product (GRDP), population density, and the poverty severity index on the Environmental Quality Index (EQI) across 16 provinces in Java and Sumatra during 2015–2024. Using a quantitative approach with balanced panel data (160 observations), the analysis applies panel regression, with the Fixed Effect Model (FEM) selected through the Chow and Hausman tests. Cluster-robust standard errors were employed to address heteroskedasticity. The findings reveal that GRDP has a positive and significant effect on EQI, while population density and poverty severity have no significant effects. Collectively, the three variables significantly influence environmental quality. The results are conceptually consistent with the Environmental Kuznets Curve (EKC), although the hypothesis cannot be empirically confirmed because the model excludes the squared GRDP (GRDP²) term.

Item Type:	Article
Uncontrolled Keywords:	Panel Data, Population Density, EQI, Poverty Severity Index, GRDP.
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Postgraduate Programs > Master Program in Economic
Depositing User:	Amirul Ulum 195027
Date Deposited:	04 Aug 2026 10:37
Last Modified:	04 Aug 2026 10:37
URI:	http://repository.ubaya.ac.id/id/eprint/51112

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