The Nexus of Human Development Index, Economic and Population Growth On Environmental Degradation In Aceh Province, Indonesia

Abstract

Environmental degradation is a primary indicator in reducing sustainability and causing many of the challenges faced by humankind, such as climate change, water scarcity, inequality, and hunger. One way to resolve the sustainable issue (environmental degradation) is to promote sustainable development through a commitment to social progress, environmental balance, and economic growth. In conjunction with the present issue, this study aims to analyse the nexus of human development index, economic and population growth on environmental degradation in South Aceh District, Aceh Province, Indonesia. This quantitative study uses secondary data that involved three main variables: environmental degradation, economic growth, and population growth. This study data were collected from the Central Bureau of Statistics, Aceh, Indonesia and related Regional Government Agency for 20 years started 1997 to 2017. This study found that the human development index and population growth positively and significantly affect environmental degradation. Also, economic growth has no significant impact on environmental degradation. In conclusion, this study identifies that when the human development index low and population growth high, it would increase environmental degradation. Surprisingly, whereas economic growth does not significantly contribute to environmental degradation, this study can provide an overview of the nexus of human development index, economic and population growth on environmental degradation and its impact on society.

Full text

The Nexus of Human Development Index, Economic and Population
Growth On Environmental Degradation In Aceh Province, Indonesia
T. ZULHAM1,*, TAUFIQ C. DAWOOD1, TALBANI FARLIAN1, JUMADIL SAPUTRA2,*,
ROLLIS JULIANSYAH3, FAJRI HADI3
1Department of Economics
Faculty of Economics and Business
Universitas Syiah Kuala
Kopelma Darussalam, Syiah Kuala, 23111 Banda Aceh
INDONESIA
2Department of Economics
Faculty of Business, Economics and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu
MALAYSIA
3Department of Economics
Faculty of Economics
Universitas Teuku Umar
Ujong Tanoh Darat, Meureubo, 23681 Aceh Barat
INDONESIA
Abstract: Environmental degradation is a primary indicator in reducing sustainability and causing many of the
challenges faced by humankind, such as climate change, water scarcity, inequality, and hunger. One way to
resolve the sustainable issue (environmental degradation) is to promote sustainable development through a
commitment to social progress, environmental balance, and economic growth. In conjunction with the present
issue, this study aims to analyse the nexus of human development index, economic and population growth on
environmental degradation in South Aceh District, Aceh Province, Indonesia. This quantitative study uses
secondary data that involved three main variables: environmental degradation, economic growth, and
population growth. This study data were collected from the Central Bureau of Statistics, Aceh, Indonesia and
related Regional Government Agency for 20 years started 1997 to 2017. This study found that the human
development index and population growth positively and significantly affect environmental degradation. Also,
economic growth has no significant impact on environmental degradation. In conclusion, this study identifies
that when the human development index low and population growth high, it would increase environmental
degradation. Surprisingly, whereas economic growth does not significantly contribute to environmental
degradation, this study can provide an overview of the nexus of human development index, economic and
population growth on environmental degradation and its impact on society.
Key-Words: - Environmental degradation, human development index, economic and population growth
Received: February 28, 2021. Revised: April 9, 2021. Accepted: April 12, 2021. Published: April 14, 2021.
1 Introduction
Environmental degradation is reducing
sustainability and causing many of the challenges
faced by humankind, such as climate change, water
scarcity, inequality, and hunger and a primary
indicator in measuring the sustainable development
goal. For many people in developing countries,
economic growth is a challenge [1]. One way to
achieve the conditions for developing an economy is
to create and develop economic factors such as
industry, agriculture, trade, and others [2]–[4]. For
achieving sustainable development, enough capital
and experts are needed, which aims to plan and look
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DOI: 10.37394/232015.2021.17.31
T. Zulham, Taufiq C. Dawood,
Talbani Farlian, Jumadil Saputra,
Rollis Juliansyah, Fajri Hadi
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the government seriousness [5]. [6]–[9] writes in his
book that long-term economic growth is
significantly affected by increased investment,
human capital, technological expertise, and
industrial plants and equipment are all examples.
[1]. The magnitude of capital flows, like Indonesia's,
provides an opportunity to obtain funding for
economic growth.
In the form of degradation, declining
environmental sustainability affects livestock,
deforestation, poor agricultural management,
internal displacement and climate change in
desertification, drought, and floods [10], [11]. It is
also undeniable that with many investment, it is
certainly opening up for developing the
infrastructure such as roads, dams and factories to
support the economic activities. So, at a certain
point, if this situation out of control, it will cause
negative externalities in the form of environmental
degradation. Also, developing economic regions
(central economic regions) will become a magnet
for the population around and outside the area to try
to be part of these developments.
Environmental degradation is influenced by
economic activities and demographic events such as
urbanisation, population age and population [5],
[12]. According to Environmental degradation or
environmental damage can reduce the level of
economic development. It can reduce natural
resources' productivity and cause various problems,
from health problems to degrading life comfort. The
recent increase in population has increased demand
for basic needs, which is increasingly causing more
significant environmental damage [13], [14].
Environmental degradation can also be influenced
by per capita income that affects economic growth
[15]–[17]. Population growth and migration into one
place can affect the balance of people's distribution
and affect the changing climate, availability of land,
food, and environmental degradation [15].
The relationship between environmental change
and the potential humanitarian crises in their studies
have focused on geography and refugees and
changes in the environment and population. They
stated a close relationship between environmental
change and population distribution, and population
growth [18], [19]. Environmental degradation that
has arisen recently varies from poor air quality to
rising sea levels. It is inseparable from reducing
forest area that causes prone to flooding and drought
throughout the year. Some time ago, as [20]
revealed in his research, a flood is a global problem
that is often the case in Asia.
Floods themselves are caused by excessive
rainfall, high tides and an inevitable extreme climate
change. It exacerbated by human activities that
damage the environment. It is in line with the
research that says that climate change can be caused
and accelerated by the pace of human activity;
therefore, special management is needed to deal
with it. Meanwhile, [21]–[24] revealed that
protecting the environment is necessary and
teaching disaster management to the community.
The risk of natural disasters must address as a
development problem and not just humanitarian
assistance. Environmental degradation has become a
severe problem in various regencies/cities, not least
in areas close to the centre of environmental studies.
South Aceh has the highest level of environmental
damage [25]. The high increase in environmental
degradation continues to occur, as data presented by
the Central Statistics Agency (BPS) of Aceh
Province stated that the environmental damage is
getting bigger each year. [26] ; [27]. People who are
not prosperous tend to be affected by their
livelihoods due to their dependence on natural
resources.
The development has many sub-levels in
achieving the expected economic growth, which is
also interrelated with the Human Development
Index (HDI). Good human development can
produce innovation in developing efficient and
effective performance technologies in development
[28]. This condition experiences many challenges in
managing environmental sustainability [29]. A
causal relationship between economic growth,
human development and sustainable resources and
in carrying out good human development requires a
balance of the environment, peace and humanitarian
conscience. Therefore, there is a link between HDI
and environmental degradation. The following is
data of environmental degradation throughout the
year and HDI figures in Aceh Selatan District, Aceh
Province.
2 Literature Review
Development is often disregarding
environmental sustainability. It happens a lot,
especially in various developing countries, even in
developed countries. It is like gambling when the
balance of nature is no longer enough to eradicate
and cope with pollution. The damage that occurs is
greater than the ecosystem's availability. It will
accelerate the occurrence of natural disasters and
environmental degradation getting bigger.
Environmental degradation is a process of
exploiting nature, such as forest encroachment,
conversion of land functions, drainage of peatlands
and the use of fossil energy, and others. [30] and
[31] revealed that unequal migration of people to a
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DOI: 10.37394/232015.2021.17.31
T. Zulham, Taufiq C. Dawood,
Talbani Farlian, Jumadil Saputra,
Rollis Juliansyah, Fajri Hadi
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place and increasing population could affect the
quality of the environment itself and resources in
many developing countries.
Maintaining environmental sustainability from
increasing environmental degradation is very
important in achieving long-term human well-being.
Excessive population pressure in some geographical
regions can pose severe ecological hazards,
including soil erosion, desertification, reduced
supply of fuelwood, deforestation, and degradation
of freshwater sources. Often the relationship
between population pressure and other
environmental stress types is growth in the relative
and absolute numbers of people living in poverty
[32]. [32] increasing world population without
accompanied by policies that minimise
environmental impacts can affect the welfare and
sustainability of life [33]. On the other hand,
economic growth is an economic condition in a
country that has improved for the better condition,
which is stated in a certain period. Economic growth
is defined as a process of increasing the economic
production capacity realised in the form of an
increase in national income and improvement of the
standard of living.
Economic growth is an indication of economic
development's success, and economic growth has a
significant relationship to the environment. Changes
in environmental quality can lead to disasters and
environmental balance. It caused by economic
development by expecting high economic growth
and being influenced by politics and other activities.
[34] ; [35], increasing the density of economic
integration across national borders can reduce
poverty and reduce income inequality.[36] stated
that poverty does not only talk about the absence of
what is needed in achieving prosperity, such as
clothing, food, and shelter, but also education,
health, and others.
The poor residents are the resident who has an
average per capita expenditure per month below the
Poverty Line. Meanwhile, to measure the poverty
line can be done through: The Food Poverty Line
(FPL) is the value of minimum food expenditure
equal to 2,100 kilocalories per capita per day.
Poverty Line Non-Food (NFPL) is the minimum
requirement for others' housing, clothing, education,
health, and basic needs (BPS, 2018). The increase in
population can affect the integrity of the ecosystem
and imbalance. Increasing the number of
populations that causes the density of space in an
area and affects the environmental quality will
affect health, air quality, and environmental
degradation [37].
On the other hand, according to [38], said that
economic growth could be influenced by education
both formally and non-formally. The overall human
development approach can participate directly in the
starting point of development in the sustainable
management of inherited resources. [35], [39]
detailing the HDI formed by 3 (three) basic
dimensions: Longevity and healthy living,
knowledge, and a decent standard of living. The
knowledge that can increase human development's
capacity is a deciding factor in the impact of climate
change that ends in a disaster.
3 Method
This study uses 1997-2017 time-series data from
the Central Statistics Agency and the related
Regional Government Agency. The estimation tool
or model that is used is multiple linear regression
(Ordinary Linear Square). It aims to see the cause of
the degradation of the environment in Aceh Selatan
district. Using the OLS analysis tool, this study also
limits the environment's degradation as the
dependent as measured by the number of
occurrences of flooding or drought year. Flood and
drought events in this research are indicators of
environmental degradation because of the frequent
occurrence of floods and drought in Indonesia, Aceh
and Aceh Selatan District. The Independent variable
is economic growth, as measured by the growth of
gross value added or the GDP rate (Gross Domestic
Product). HDI variable is the builder's men's
investment value, and the poor can be seen from the
number of poor people in its annual period.
This study's model is a multiple-linear regression
model that environmental degradation influenced by
economic growth, the index of human development
and population growth or mathematically can be
written: [40], [41].
𝐸𝐷 = 𝑎 + 𝛽1𝐺𝑅𝐷𝑃𝑡+ 𝛽2𝐻𝐷𝐼𝑡+ 𝛽3𝑃𝑂𝐺𝑡+ 𝜀𝑡
Whereas ED is environmental degradation,
GRDP is economic growth, HDI is the Human
Development Index, and POG is population growth.
β1, β2,β3 is estimation coefficient, εt is the Error
term.
3.1 Hypothesis
Based on the background and problem formulation
developed above, the proposed hypotheses are the
human development index, economic and
population growth have a significant effect on
environment degradation.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2021.17.31
T. Zulham, Taufiq C. Dawood,
Talbani Farlian, Jumadil Saputra,
Rollis Juliansyah, Fajri Hadi
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4 Results and Discussion
4.1 Results
By applying the time-series regression analysis,
the result of the model fit in this study, as seen in
Table 1 below:
Table 1. The result of Model Fit
Model
Statistic
R
0.980a
R Square
0.961
Adjusted R Square
0.921
Std. Error of the Estimate
0.05554
Change Statistics
R Square
Change
0.961
F Change
24.379
df1
3
df2
3
Sig. F Change
0.013
Table 1 displays the result of model fit testing.
We found that the value of coefficient determination
R-Square is 0.961. It means that economic growth,
human development index, and population growth
can explain its environmental degradation
relationship as much as 96.1 per cent. There are 3.9
per cent explained by other variables which have no
included in this study. Further, the value of adjusted
R-Square is 0.921. In other words, when we added
one or two variable in the model, it will increase the
R-Square value as many as 92.1 per cent. Next, we
present the result of hypotheses testing. It displays
in Table 2 below:
Table 2. The result of hypotheses testing
Unstandardised
Coefficients
Standardised
Coefficients
t
Sig.
B
Std.
Error
Beta
(Constant)
-
32.357
6.022
-
5.373
0.013
Economic
Growth
-0.102
0.235
-0.063
-
0.435
0.693
Human
Development
Index
8.899
1.390
0.931
6.400
0.008
Population
Growth
0.428
0.123
0.406
3.482
0.04
Dependent variable: Environmental Degradation
Table 2 above illustrates the result of hypotheses
testing by applying time-series regression. Before
conducting the hypotheses testing, we have run the
normality, linearity, homoscedasticity and
autocorrelation. By referring to the table above, we
found that economic growth has no significant
effect on environmental degradation. Further, the
Human Development Index's coefficient regression
is 8.899, and the standard deviation is 1.390, and the
t-stat is 6.400, with a significant value is less than 1
per cent. It means that, by assuming there are no
changes in the human development index, then
environmental degradation will decrease as much as
8.899 per cent. Also, the coefficient regression for
population growth is 0.428, and the standard
deviation is 0.123, and the t-stat is 3.482, with a
significant value is less than 1 per cent. It means
that, by assuming there are no changes in the human
development index, then environmental degradation
will decrease as much as 42.8 per cent.
4.2 Discussion
This study's result is that economic growth has a
negative and not significant effect on environmental
degradation; however, economic growth has not yet
had a comprehensive impact on environmental
degradation. In other words, the negative coefficient
obtained indicates that the better the economic
growth, the less environmental degradation. It
suggests that economic development in Aceh
Selatan is not necessary and has an impact on
environmental degradation. In this case, in line with
research by [42] says that environmentally friendly
economic development can have a positive impact
on environmental sustainability in the long term. In
contrast, in developing countries, there is a negative
correlation between economic growth and
environmental sustainability. Due to the use of
energy in the creation of development, it is often the
defy environmental values in many developing
countries [43]. How to move markets in
development is a significant problem that
policymakers must solve today. Essential in creating
a growing economy and a healthy environment [4].
Policies in managing a flexible environment can
improve leading technology in handling
environmental problems caused by development [5].
The estimation results also show that human
development in this context is focused on the HDI.
The poor population's percentage has a positive and
significant relationship to environmental
degradation in Aceh Selatan District. In line with
the Ministry of Human Resource Development
research in 2018 [31], [36] said that poor population
and human development could influence behaviour
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DOI: 10.37394/232015.2021.17.31
T. Zulham, Taufiq C. Dawood,
Talbani Farlian, Jumadil Saputra,
Rollis Juliansyah, Fajri Hadi
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change and show the possibility of unfavourable
directions in environmental condition. Partially the
human development process is the most powerful in
influencing environmental degradation. The same
thing also expressed by [44] that economically
disadvantaged people tend to be uncontrolled in
exploiting nature such as forest encroachment and
mangroves on the coast because they do not have
land capital and are forced to use the land. It can
damage the environment. However, this has a
relatively low percentage; moreover, high
Population growth can affect sustainability in
environmental monitoring and the high industry
operation in producing goods and services because
of high market demand due to the population
growth.
5 Conclusions
In conclusions, this study has identified that
when the human development index low and
population growth high, it would increase
environmental degradation. Surprisingly, whereas
economic growth does not significantly contribute
to environmental degradation, this study can provide
an overview of the nexus of human development
index, economic and population growth on
environmental degradation and its impact on
society.
Acknowledgements
We would like to thank Universiti Malaysia
Terengganu for supporting this research publication
and one form of research collaboration with the
Universitas Teuku Umar and Universitas Syiah
Kuala.
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Contribution of individual authors to
the creation of a scientific article
(ghostwriting policy)
T. Zulham writing – original draft, investigation and
supervision
Taufiq C. Dawood writing – original draft,
investigation, editing and supervision.
Talbani Farlian writing – original draft,
investigation, editing and data analysis.
Jumadil Saputra writing – methodology, review,
editing, investigation, and data analysis.
Rollis Juliansyah writing – methodology, review,
and editing.
Fajri Hadi writing – methodology, review, and
editing.
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International, CC BY 4.0)
This article is published under the terms of the
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WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2021.17.31
T. Zulham, Taufiq C. Dawood,
Talbani Farlian, Jumadil Saputra,
Rollis Juliansyah, Fajri Hadi
E-ISSN: 2224-3496
320
Volume 17, 2021