The Economic and Social Implications of Negative Externalities in Nickel Mining

Authors

  • Jony Puspa Kusuma Faculty of Economics and Business, Brawijaya University, Malang, Indonesia
  • Candra Fajri Ananda Faculty of Economics and Business, Brawijaya University, Malang, Indonesia
  • Moh. Khusaini Faculty of Economics and Business, Brawijaya University, Malang, Indonesia
  • Asfi Manzilati Faculty of Economics and Business, Brawijaya University, Malang, Indonesia

DOI:

https://doi.org/10.14738/abr.118.15339

Keywords:

Nickel mining externalities, Collective action, Economic and social implications

Abstract

This research provides an in-depth understanding of the externalities caused by nickel mining and the importance of communities taking collective action against mining activities in Kolaka Regency. This research focused on sea cucumber fishing households in Tambea Village, Pomalaa Sub-district. In some cases, companies with an IUP can carry out practices that can cause harm to the community and the surrounding environment. Environmental contamination, restricted access to land, and economic limitations are the main issues affected communities face. In the face of adverse economic and social implications due to the negative externalities of nickel mining, sea cucumber fishermen have taken collective action and realized the importance of advocating for their rights and protecting the environment and natural resources that support their livelihoods. To address these negative externalities, we need a comprehensive policy design. Qualitative approach This research uses data collection techniques. The data collected in the case study came from participant narratives, direct observation, and analysis of relevant documents that can provide an in-depth understanding of the unique context, with qualitative analysis revealing a wealth of information and detailed details. The location of the case study research is in a village called Tambea Village, Pomalaa District, Kolaka Regency. The results illustrate the economic and social negative externalities caused by this mining activity to sea cucumber fishermen. The results of this study are expected to be the basis for designing comprehensive policies to reduce the negative impacts of nickel mining and protect fishing communities and the surrounding environment.

References

Agar, Jesse. "Tragedy of the Commons │ The Problem with Open Access". Youtube. This Place (saluran YouTube). Diakses pada 5 Juni 2023

Alchian, Armen A. "Property Rights". New Palgrave Dictionary of Economics, Second Edition (2008). A property right is a socially enforced right to select uses of an economic good Amadeo, Kimberly. "Pigouvian Taxes: Definition, Examples, Pros and Cons". The Balance (dalam bahasa Inggris). Diakses tanggal 2023-07-03.

Asiah, Prajanti A (2014) Pemantauan Kualitas Air Laut Akibat Tumpahan Pasir Nikel Di Perairan Teluk Buli, Halmahera. Ecolab, 8(2): 53–96

Halpin, Andrew., "Disproving the Coase Theorem?", 23 Econ. & Phil. 321, 325–27 (2007).

Becker, J. C., & Tausch, N. (2015). A dynamic model of engagement in normative and non-normative collective action: Psychological antecedents, consequences, and barriers. European Review of Social Psychology, 26(1), 43-92.

Beeks, J.C. and Ziko, A., 2018. Internalizing economic externalities on the macroeconomic stage. Exploring and expanding PaulHawken's the ecology of commerce: a declaration of sustainability for globalized solutions. Eur J Sustain Dev Res, 2(1), p.03.

Dean Lueck (2008). "Property law, economics and," The New Palgrave Dictionary of Economics, 2nd Edition.

Demsetz, Harold (1967). ""Toward a Theory of Property Rights."" The American Economic Review. 57: 347–359.

Dowding, Keith. "Collective action problem". Encyclopedia Britannica, 7 Mar. 2013, https://www.britannica.com/topic/collective-action-problem-1917157. Accessed 7 July 2023

Erfina & Sjarmidi. 2019. Evaluasi Fungsi Ekosistem di Pertambangan Nikel Kecamatan Pomalaa Sulawesi Tenggara. Jurnal Kesehatan, Keselamatan Kerja dan Lindungan Lingkungan. Vol 5 No. 1, 19-26

Hilson, G. (2002). An overview of land use conflicts in mining communities. Land Use Policy, 19(1), 65–73. doi:10.1016/s0264-8377(01)00043-6

Kaisa Raitio, Christina Allard, Rebecca Lawrence. (2020) Mineral extraction in Sápmi Sweden: Regulatory gaps between Sami rights and Swedish mining licensing practices. Land Use Policy 99, page 105001

Khusaini, Mohammad. 2006. Ekonomi Publik Desentralisasi Fiscal dan Pembangunan Daerah. Malang: BFE UNIBRAW

Lawrence, R., & Larsen, R. K. (2017). The politics of planning: assessing the impacts of mining on Sami lands. Third World Quarterly, 38(5), 1164–1180. doi:10.1080/01436597.2016.1257909

Manzilati, Asfi, 2016, Metode Penelitian Kualitatif: Paradigma, Metode dan Aplikasi, Universitas Brawijaya Press Marrugo-Negrete, J., Vargas-Licona, S., Ruiz-Guzmán, J. A., Marrugo-Madrid, S., Bravo, A. G., & Díez, S. (2019). Human health risk of methylmercury from fish consumption at the largest floodplain in Colombia. Environmental Research, 109050. doi: 10.1016/j.envres.2019.109050

Mukhlis, Imam. 2009. Eksternalitas, Pertumbuhan Ekonomi dan Pembangunan Berkelanjutan dalam Perspektif Teoritis. Jurnal Ekonomi Bisnis. 14(3): 191-199

Oliver E. Williamson (2000). "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, 38(3), pp. 595–613

Owen, Anthony D. 2004. Environmental Externalities, Market Distortions and The Economics of Renewable Energy Technologies.The Energy Journal, Vol.25, No. 3

Peraturan Daerah (PERDA) Provinsi Sulawesi Tenggara Nomor 5 Tahun 2013 tentang Pengelolaan Pertambangan Mineral dan Batubara.

Peraturan Pemerintah Republik Indonesia Nomor 96 Tahun 2021 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batubara

Sandmo, Agnar (2008). "Pigouvian taxes," The New Palgrave Dictionary of Economics, 2nd Edition.

Shankar, U. 2008. Environmental Externalities. Didapat Online: http://coe.mse.ac.in/dp/envt-ext-sankar.pdf

Suparmoko. 2006. PDRB Hijau (Konsep Dan Metodologi), Materi disampaikan pada Pelatihan Penyusunan PDRB Hijau dan Perencanaan Kehutanan Berbasis Penataan Ruang, Jakarta.

Soemarwoto O. 1989. Analisis Dampak Lingkungan. Yogyakarta (ID): Gajah Mada University Pr.

Thrainn Eggertsson (1990). Economic behaviour and institutions. Cambridge, UK: Cambridge University Press. ISBN 978-0-521-34891-1.

Undang-Undang Nomor 3 Tahun 2020 tentang Perubahan Atas Undang-Undang Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara

Van Zomeren, M., Postmes, T., & Spears, R. (2008). Toward an integrative social identity model of collective action: A quantitative research synthesis of three socio-psychological perspectives. Psychological Bulletin, 134(4), 504–535. doi:10.1037/0033-2909.134.4.504

Walton H. Hamilton (1919). "The Institutional Approach to Economic Theory," American Economic Review, 9(1), Supplement, pp. 309–18. Reprinted in R. Albelda, C. Gunn, and W. Waller (1987), Alternatives to Economic Orthodoxy: A Reader in Political Economy, pp. 204

Yustika, Ahmad Erani, 2012, Ekonomi Kelembagaan. Jakarta: Erlangga

Downloads

Published

2023-08-25

How to Cite

Kusuma, J. P., Ananda, C. F., Khusaini, M., & Manzilati, A. (2023). The Economic and Social Implications of Negative Externalities in Nickel Mining. Archives of Business Research, 11(8), 174–188. https://doi.org/10.14738/abr.118.15339