Environmental kuznets curve for deforestation in Indonesia: An ARDL bounds testing approach

The main objective of this study is to empirically demonstrate the inverse u-shaped relationship,which is generally called the environmental kuznets curve (ekc),between economic development and deforestation rate in indonesia. for this purpose,we analyzed time-series data for indonesia over 46 years from 1962 to 2007 with the autoregressive distributed lag (ardl) bounds testing approach to cointegration. results support the long-run inverted-u relationship,which implies that,while the deforestation rate increases at the initial stage of economic growth,it declines after a threshold point. the income turning point of the ekc was calculated to be us$ 990.4. these findings derived solely from the time-series data for indonesia provide helpful information for the indonesian government and policy-makers in the sense that it explicitly indicates the specific tendency for that country. © 2016,statistical economic and social research and. all rights reserved.