The Relationship of Environmental Quality and Economic Growth

Bowo, Prasetyo Ari (2012) The Relationship of Environmental Quality and Economic Growth. In: Prosiding Seminar & Konferensi nasional Manajemen Bisnis: memberdayakan UMKM dalam meningkatkan kesejahteraan masyarakat menghadapi persaingan global. Kudus, 26 Mei 2012. Badan Penerbit Universitas Muria Kudus, Kudus, pp. 201-206. ISBN 978-602-99614-4-7

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Every country trying to spur economic development through increasing the number of national output. However, economic development is not merely to pursue high growth of national output , but should also refer to the concept of sustainable development so that achieve the real welfare. At least there are three things required in sustainable development that are to maintain and to increase manufacturing capital (plant and machinery), human capital (skills and experience), and environmental capital (forests and quality of air, soil, and water). Changes in economic structure have an impact on the intensity of pollution on the environment, industry-based economic structure further contribute to the pollution generated in comparison with agriculture-based or service based economy. Industrial economy using more engine and fuel in the production process so that produce more emissions and environmental pollution. Environmental pollution is a degradation process of environment quality both on land, water and air. The idea that economic growth is ultimately beneficial for the environment makes experts argue that it is important to maintain economic growth as the most powerful way to improve the economic environment is to become rich (Beckerman, 1992:6). This argument implies that environmental problems are a temporary problem due to the growth and technological innovation is expected to solve environmental problems. The relationship between economic development and environment quality illustrates how environmental issues can undermine development goals. There are two chances of the condition. first, the quality of the environment is part of welfare improvement as a goal of economic development. second, when environment is damage and the natural productivity decline due to the decline in the quality and quantity of resources as factors of production it will reduce the output. The illustration of that relationship known as Environmental Kuznets Curve (EKC) that shows inverse U shape that represents rapidly growth of environmental damages on the early economic process until reach the turning point when income per capita in certain level.

Item Type: Book Section
Uncontrolled Keywords: economic development, sustainable development, environment damages, EKC
Subjects: Ilmu-ilmu Sosial > Teori Ekonomi
Divisions: Fakultas Ekonomi > Magister Manajemen (S2)
Depositing User: Users 2 not found.
Date Deposited: 26 May 2012 05:17
Last Modified: 26 May 2012 05:17

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