HDI and Environmental Kuznets Curve Hypothesis For Deforestation In Indonesia

ARIFIN, MUHTAR,

2013 | Tesis | S2 MEP

Deforestation is often a problem for developing countries. It is associated with an effort to increase revenue which then causeÂ’s environmental damage. Environmental Kuznets curve (EKC) for deforestation' is a hypothesis to analyze the relationship between economic growth and forest degradation. This study attempts to assess the relationship between economic growth and the human development index (HDI), as well as other contributing factors to deforestation in Indonesia. This study in particular examines the compatibility of theHDIand EKC models of deforestation. The study uses panel data of the 33 provinces in Indonesia from 2005 to 2010. Regression results do not confirm the existence of an EKC for deforestation in Indonesia and do not confirm the presence of an EKC-type relationship between HDI and deforestation.The most significant factor correlated with deforestation in Indonesia is plantations.

Kata Kunci : deforestation, environmental Kuznets curve, economic growth, HDI