Green Economy Sumatera : Complexity of Environmental Quality Index

Abstract

Recent environmental degradation in the country of Indonesia has caused a decline in the rate of economic development. This phenomenon is due to the high costs borne by developing countries due to reduced productivity of natural resources. Indicators in assessing the performance of environmental management are contained in the Environmental Quality Index (IKLH), which is assessed from the condition of air, water, and forest cover. Sumatra Island is an island that has dynamic changes in the Environmental Quality Index (EQI) that vary from year to year. This is due to extreme climate change, natural disasters, and forest fires that have occurred frequently in recent years. This study will discuss what influences the Environmental Quality Index (EQI) and how the implementation of the green economy concept on the island of Sumatra. The method used in this study is the panel data regression method using the RStudio application and descriptive quadrant analysis of the ten provinces on Suamtera Island with the period 2016-2019. The results of this study indicate that there are changes based on the average calculation of economic growth and IKLH values in several provinces on the island of Sumatra. The results of this study also show that Economic Growth, Forest Area, and Mining Sector have a significant influence on the Environmental Quality Index (IKLH).