CO2 Economic Cost Analysis in the Process of Economic Development in Indonesia

Deteriorating environmental conditions can be an obstacle in creating a sustainable economic development that takes care of all parties. This study Aimed to assess the effects of Foreign Direct Investment (FDI), the Domestic Investment (DCI), the Gross Domestic Product (GDP), population, and Industrial Sector Contribution to Air Pollution. The Data used is secondary Data Obtained on the report of the Central Statistics Agency (BPS) of data in 1996 to 2011 in particular. Examined the data included the data of FDI, domestic investment, GDP, population, Contribution of Industrial Sector and Air Pollution. Data were Analyzed using the method of multiple regression test, Classical Assumption Test. Obtained results show that together the Gross Domestic Product and Foreign Investment significant effect on Air Pollution. The research conclusion from this is that there are three independent variables have no significant against Air Pollution. Reviews These variables namely the Domestic Investment, Population, and Industry Sector Contribution.     Keywords: Air Pollution, FDI, domestic investment, GDP, population