Does Inflation Reduce Air Pollution? Evidence from Indonesia

Setyadharma, Andryan; Oktavilia, Shanty; Wahyuningrum, Indah Fajarini Sri; Nikensari, Sri Indah; Saputra, Arumawan Mei

doi:10.1051/e3sconf/202131701068

Cited by 8 publications

(6 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This shows that the causality relationship will be permanent in the long term. The findings support their work (Ullah et al, 2020;Ahmad et al, 2021;Ullah et al, 2021;Rakshit and Neog, 2021;Setyadharma et al, 2021;Tahir et al, 2022;Djedaiet, 2023;Sanlı and Gulbay Yigiteli, 2023). In these studies, there is a relationship between macroeconomic indicators and environmental quality.…”

Section: Discussionsupporting

confidence: 84%

“…As a result, while mitigating environmental pollution, policymakers should take into account the employment of fiscal and monetary policy tools. The study conducted by Setyadharma et al (2021) examined the empirical relationship between inflation and air pollution in Indonesia throughout the time frame spanning from 1981 to 2017. The findings of the research indicate that there exists a negative correlation between high levels of inflation and air pollution, both in the short and long run.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Studies on inflation instability and the environment are generally in the context of developing countries; There are studies on Pakistan (Khan, 2019;Ullah et al, 2020), monetary and fiscal policies and environment (Ullah et al, 2021); inflation and air pollution (Setyadharma et al, 2021) for Indonesia; macroeconomic uncertainty on environmental degradation (Rakshit and Neog 2021) for India; renewable energy, exchange rate and inflation instability (Deka et al, 2022) for Brazil. In the context of developed countries, studies for the USA (Tahir et al, 2022) and Germany (Khan et al, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Türkiye’de Enflasyon İstikrarsızlığı Çevre Kirliliğine Neden Olur mu? Fourier-Wavelet Nedensellik Testinden Kanıtlar

DEMİRTAŞ

2023

EPF Journal

View full text Add to dashboard Cite

The Turkish economy has faced many macroeconomic problems in terms of GDP stability, inflation stability, growth rate, and exchange rate. This situation has become even more noticeable in recent times, especially with the negative effects of the Covid 19 epidemic and the Russia-Ukraine war. Thus, inflation in Turkiye has increased and has a more unstable outlook. However, environmental problems have also increased. In light of this information, the aim of the study is to examine the causality relationship between inflation instability and environmental pollution for the period 1990-2021 by considering growth, energy consumption, and financial development as control variables in Turkiye. For this purpose, firstly, the series was subjected to wavelet transform. Afterwards, the transformed series were analyzed with the Fourier TY and Fractional Fourier TY causality tests as short, medium, and long term. Findings from the Fourier causality test show that inflation instability promotes environmental pollution in the short, medium, and long term. According to the Fractional Fourier causality test, which I used to test whether the shocks are permanent, there is persistence from inflation instability to environmental pollution only in the medium term. This study is the first to examine the subject in the case of Türkiye.

show abstract

Section: Discussionsupporting

confidence: 84%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Türkiye’de Enflasyon İstikrarsızlığı Çevre Kirliliğine Neden Olur mu? Fourier-Wavelet Nedensellik Testinden Kanıtlar

DEMİRTAŞ

2023

EPF Journal

View full text Add to dashboard Cite

show abstract

“…However, as a result of the pandemic that occurred, in 2020 the unemployment rate in Indonesia experienced a significant increase, even exceeding the unemployment rate in 2015. Additionally, economic activity influences the degradation of environmental quality (Setyadharma et al, 2021;A'yun & Khasanah, 2022). Consumption is one of the economic activity that impedes the development of environmental quality.…”

Section: Ahadiyah and Setyadharmamentioning

confidence: 99%

The impact of the provincial minimum wage on environmental quality in indonesia

Ahadiyah,

Setyadharma

2023

JESP

View full text Add to dashboard Cite

This research aims to determine the relationship between provincial minimum wages, poverty, unemployment, and income inequality to the environmental quality index (EQI). This research also aims to demonstrate if the Environmental Kuznet Curve (EKC) hypothesis is applicable in Indonesia. This research utilized secondary data collected from 33 provinces in Indonesia between 2012 and 2021. This research used panel regression with Fixed Effect Model (FEM) as the research method. The research results indicated that the provincial minimum wages and poverty positively and significantly affected the EQI. The results also demonstrated that the EKC hypothesis holds true in Indonesia, as illustrated by the significance of the GRDP per capita and GRDP per capita squared. Meanwhile, this research showed that unemployment and income inequality did not significantly impact the environmental quality index. This study offered a new analysis on the impact of provincial minimum wage on EQI in Indonesia. Therefore, this study has contributed to the additional information to the body of knowledge. The government needs to strive for an increase in the development and use of environmentally friendly products, as well as optimization of environmental protection programs. In addition, government needs to increase the provincial minimum wage according to limits set to improve environmental quality. The limited variables and research methods used are expected that further research can complement this study.

show abstract

“…Setyadharma et al (2021) [69] analyzed the impact of inflation on air pollution in Indonesia in the period between 1981 and 2017. Their research indicates that both in the long and the short run, higher inflation is causing a lower level of air pollution.…”

Section: They Used An Indirect Assessment Of the Correlation Coeffici...mentioning

confidence: 99%

CO2 Emissions and Macroeconomic Indicators: Analysis of the Most Polluted Regions in the World

et al. 2022

View full text Add to dashboard Cite

There is no sector of the economy that is not dependent on the state of development of the energy sector. This sector produces a significant share of global CO2 emissions. Harmful CO2 emissions and greenhouse gas emissions accelerate global warming. Therefore, more and more countries are adopting a strategy for the transition to carbon-neutral energy. However, energy independence and economic competitiveness are closely linked. One cannot analyze them separately. Given these facts, we focused on conducting an econometric study of the impact of key macroeconomic indicators on the level of СО2 emissions into the air in the United States and the Asia-Pacific region as the regions with the largest СО2 emissions. The modeling was carried out using the method of a correlation–regression analysis with the subsequent construction of econometric models. The quality of the built econometric models was checked using the coefficient of determination and Fisher’s criterion. The sample of statistics was formed from all the available values of the World Bank’s annual indicators for the period 1970–2020. The findings achieved showed that: (i) The results of our study confirmed the dependence of СО2 emissions on macroeconomic factors such as GDP, exports and imports, the rate of inflation, and unemployment. It allows the governments of many countries to use research findings to diagnose, monitor, and forecast macroeconomic outcomes to reduce or maintain allowable СО2 emissions. (ii) Identifying and assessing economic losses from environmental pollution by СО2 emissions using econometric models will allow to ensure effective public environmental and economic policies aimed at reducing harmful СО2 emissions into the air. It may be regarded as the practical importance of our study.

show abstract

Does Inflation Reduce Air Pollution? Evidence from Indonesia

Cited by 8 publications

References 5 publications

Türkiye’de Enflasyon İstikrarsızlığı Çevre Kirliliğine Neden Olur mu? Fourier-Wavelet Nedensellik Testinden Kanıtlar

Türkiye’de Enflasyon İstikrarsızlığı Çevre Kirliliğine Neden Olur mu? Fourier-Wavelet Nedensellik Testinden Kanıtlar

The impact of the provincial minimum wage on environmental quality in indonesia

CO2 Emissions and Macroeconomic Indicators: Analysis of the Most Polluted Regions in the World

Contact Info

Product

Resources

About