Title:
The Effects of Environmental, Economic, and Demographic Factors on the Environmental Quality Index in Indonesia

Authors:
Bagas Fakhri Maulana, Hady Sutjipto, Togi Haidat Mangara, Sugeng Setyadi, Indonesia

Abstract:

This study aims to identify the effect of environmental expenditure, agricultural sector GRDP, industrial sector GRDP, foreign investment, population density, and human development index on the environmental quality index in 34 provinces in Indonesia from 2016 to 2023. This study uses panel data comprising time-series data for the period 2016–2023 and cross-sectional data for 34 provinces in Indonesia. The analysis method used in this study employs a dynamic panel data approach with the GMM (Generalized Method of Moments) model. Based on the GMM (Generalized Method of Moments) estimation results, the Foreign Investment and Human Development Index has a significant positive effect. In contrast, Environmental Expenditure, industrial-sector GRDP, and population density have significant negative effects on the Environmental Quality Index. Meanwhile, the agricultural sector GRDP has no effect and is not significant for the Environmental Quality Index.

DOI: https://doi.org/10.51505/IJEBMR.2026.10513