GRDP Per Capita and Waste Generation in Indonesia: Incorporating Regional Heterogeneity and Policy Interaction Analysis

Aristawidya Dwi Putri; Widyono Soetjipto

doi:10.59261/inkubis.v8i3.397

Authors

Aristawidya Dwi Putri Universitas Indonesia
Widyono Soetjipto Universitas Indonesia

DOI:

https://doi.org/10.59261/inkubis.v8i3.397

Keywords:

waste generation, GRDP per capita, Jakstrada, waste management policy, Two-Way Fixed Effects, sustainable development

Abstract

Background: Economic growth, reflected by an increase in GRDP per capita, may stimulate consumption activities and contribute to higher waste generation. However, this relationship can differ across regions depending on waste management capacity and policy implementation.

Objective: This study examines the relationship between GRDP per capita and waste generation at the district/city level in Indonesia by considering the moderating role of the Regional Waste Management Policy Strategy (Jakstrada).

Methods: This study employed panel data covering Indonesian districts/cities during 2019–2024 and estimated the model using the Two-Way Fixed Effects approach. Robustness checks were conducted through mean centering of interaction variables to assess the consistency of the findings.

Results: The estimation results indicate that GRDP per capita does not significantly affect waste generation in the baseline model. However, after incorporating Jakstrada as a moderating variable, the relationship becomes significant, showing that higher GRDP per capita is associated with increased waste generation. The negative and significant interaction coefficient demonstrates that Jakstrada weakens the tendency of waste generation growth associated with economic expansion. Further analysis indicates a potential nonlinear relationship between economic growth and waste generation. Robustness tests confirm the consistency of the coefficient direction and statistical significance.

Conclusion: The findings highlight the importance of regional waste management policies in ensuring that economic growth is accompanied by sustainable environmental management. Strengthening policy implementation can help reduce the environmental pressures arising from economic development.

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