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Economic Growth and Development of a Minapolitan Area Based on the Utilization of Renewable Energy, Takalar Regency, South Sulawesi, Indonesia

Author

Listed:
  • Batara Surya

    (Department of Urban and Regional Planning, Faculty of Engineering, University Bosowa Makassar City, Indonesia,)

  • Agus Salim

    (Department of Regional Planning, Faculty of Engineering, University Bosowa Makassar City,)

  • Seri Suriani

    (Department of Financial Management, Faculty of Economic and Bussines, University Bosowa Makassar City)

  • Firman Menne

    (Department of Accounting, Faculty of Economics and Business, University of Bosowa, Makassar City)

  • Emil Salim Rasyidi

    (Department of Urban Planning, Faculty of Engineering, Bosowa University,)

Abstract

Accelerated development of the Takalar Regency area towards economic growth has an impact on the productivity of the community's economic enterprises. Furthermore, the increase in the productivity of economic enterprises coupled with the development of the Minapolitan area will contribute positively to meeting renewable energy needs and improving environmental quality towards sustainable development. This study aims to analyze: (1) Economic growth and work productivity as determinants of increasing energy demand for the Minapolitan area; (2) The effect of economic growth, utilization of renewable energy, and strengthening of institutional capacity on improving environmental quality and sustainable development of Minapolitan areas. This study uses a qualitative-quantitative approach sequentially. Data obtained through observation, in-depth interviews, surveys, and documentation. The results of the study indicate that economic growth coupled with the preparation of energy infrastructure in the development of the Minapolitan area has a positive contribution to increasing the productivity of community economic enterprises. The effect of total economic growth, utilization of renewable energy, and strengthening of institutional capacity on environmental quality improvement is 63.36%. Furthermore, the residual effect or residue that was not examined on the improvement of environmental quality was 36.64%. The direct effect of increasing the quality of the environment on the sustainability of the development of the Minapolitan area is 67.73%. The remaining effect or residue is 32.27%. Thus, economic growth, renewable energy utilization, and strengthening of institutional capacity together have an effect, on improving environmental quality with a determination coefficient of 46.65%, and an increase in environmental quality affects the sustainability of the Minapolitan area development with a determination coefficient of 39.56%. This study recommends that the direction of the sustainable development of the Minapolitan area is very important to optimize the use of renewable energy towards environmental, economic, and social sustainability, followed by strengthening the institutional capacity of the government and society in ensuring a balanced development in the future.

Suggested Citation

  • Batara Surya & Agus Salim & Seri Suriani & Firman Menne & Emil Salim Rasyidi, 2021. "Economic Growth and Development of a Minapolitan Area Based on the Utilization of Renewable Energy, Takalar Regency, South Sulawesi, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 255-274.
    • Handle: RePEc:eco:journ2:2021-05-29
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    4. Gyanendra Singh Sisodia & Hemant Kumar Sah & Hajer Kratou & Rajesh Mohnot & Alberto Ibanez & Bhumika Gupta, 2023. "The Long-Run Effect of Carbon Emission and Economic Growth in European Countries: A Computational Analysis through Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 271-278, May.

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    More about this item

    Keywords

    economic growth; Minapolitan area; economic productivity; renewable energy; sustainable development.;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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