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    gilangwika
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    This document summarizes a research study that aimed to: 1) Estimate the economic value of environmental degradation and carrying capacity in East Java Province's agricultural sector. 2) Analyze how environmental factors impact the sector's GDP growth rate. 3) Determine if farms allocate costs to conservation efforts. The study used time series data from 1994-2013, and models like IPCC 2006 and simultaneous equation modeling. It found that GDP growth corrected for environmental factors was higher than reported. Farms did not allocate costs to conservation. The study's model showed degradation lowers agricultural GDP, while policies like increased credit and investments could boost GDP while also improving the environment.

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    This document summarizes a research study that aimed to: 1) Estimate the economic value of environmental degradation and carrying capacity in East Java Province's agricultural sector. 2) Analyze how environmental factors impact the sector's GDP growth rate. 3) Determine if farms allocate costs to conservation efforts. The study used time series data from 1994-2013, and models like IPCC 2006 and simultaneous equation modeling. It found that GDP growth corrected for environmental factors was higher than reported. Farms did not allocate costs to conservation. The study's model showed degradation lowers agricultural GDP, while policies like increased credit and investments could boost GDP while also improving the environment.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    7 views1 page

    Abstract Thesis

    Uploaded by

    gilangwika
    This document summarizes a research study that aimed to: 1) Estimate the economic value of environmental degradation and carrying capacity in East Java Province's agricultural sector. 2) Analyze how environmental factors impact the sector's GDP growth rate. 3) Determine if farms allocate costs to conservation efforts. The study used time series data from 1994-2013, and models like IPCC 2006 and simultaneous equation modeling. It found that GDP growth corrected for environmental factors was higher than reported. Farms did not allocate costs to conservation. The study's model showed degradation lowers agricultural GDP, while policies like increased credit and investments could boost GDP while also improving the environment.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Economic Valuation of Environmental Carrying Capacity and Degradation of

    Agricultural Sector in East Java Province, Indonesia

    Abstract

    Agricultural sector is strategic economic sector in economic development. Beside economic


    benefit, agricultural sector yields environmental externality in form of environmental
    degradation and carrying capacity. this research aims (1) to know approximate economic
    value of environmental degradation and carrying capacity in agricultural sector; (2) to know
    growth of corrected Regional Gross Domestic Product (RGDP) of the agricultural sector; (3)
    to identify whether conservation cost is allocated in farm management; (4) to know effect of
    environmental degradation and carrying capacity to RGDP of the agricultural sector; (5) to
    know effect of RGDP of the agricultural sector to environmental degradation and carrying
    capacity; (6) to determine the policy which can decrease environmetal degradation, increase
    environmental carrying capacity, and increase RGDP of the agricultural sector all at once.
    This research was conducted in East Java Province by using time series data of 1994-2013
    period. Analysis in this research used guidelines of IPCC 2006, USLE, The Environmental
    Kuznets Curve postulate, and simultaneous equation model. Based on results of the
    analysis,it found that growth of corrected RGDP of the agricultural sector is faster than
    uncorrected one. Conservation cost for reducing land erosion wasn't allocated in farm
    management. Simultaneous model created in this research shown that RGDP of the
    agricultural sector had positively significant effect to carrying capacity and environmental
    degradation had negatively significant effect to RGDP of the agricultural sector. Increasing
    credit allocation in agricultural sector and increasing investment in agriculture, chemical, and
    timber industry can decrease environmental degradation, increase environmental carrying
    capacity, and increase RGDP of the agricultural sector all at once.

    Key Words: Agricultural sector, Externality, The Environmental Kuznets Curve,


    Simultaneous equation model, East Java Province.

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