Environmental degradation in ASEAN: assessing the criticality of natural resources abundance, economic growth and human capital

Author(s):  
Solomon Prince Nathaniel
Author(s):  
Fitri Kartiasih ◽  
Wanda Pribadi

Poverty is both a cause and a victim of deteriorating environmental quality. The poor are regarded as very dependent on the environment and natural resources in sustaining their lives so that the environment and natural resources are exploited regardless of their sustainability. On the other hand, environmental degradation causes the poor to get out of poverty. This study aims to (1) analyze the general picture of environmental quality and poverty, (2) analyze the effect of poverty on the environment, (3) analyze the effect of environmental quality on poverty along with other supporting factors in Indonesia 2012-2014. The analytical method used is simultaneous equation with EC2SLS method. The results show that poverty can affect environmental degradation but not vice versa. Exogenous variables that significantly affect the quality of the environment are the growth of the number of poor, economic growth, population density, and literacy rate. Exogenous variables that have significant effect on poverty are economic growth, wage, population density, and literacy rate.


2021 ◽  
Vol 23 (2) ◽  
pp. 107-121
Author(s):  
Cuéllar Pavón

As proposed by the current theoretical framework, the fact that the economic growth of a country depends not only on the formation of physical and human capital and the sustainable exploitation of its natural resources, but also on the financial inclusion that allows economic agents to find solutions to liquidity restrictions and channel savings towards productive investment is exhibited in this paper. By matching multiple databases, static and dynamic panel estimates are developed, verifying the robustness of results and the endogenous nature of economic growth. The current research demonstrates that social inclusion is not only the desired result of economic growth, but a required input for its future sustainability.


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