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The Impact of Islamic Financial Development, GDP, and Population on Environmental Quality in Indonesia

Author

Listed:
  • Titin Agustin Nengsih

    (Faculty of Economy and Islamic Business, UIN Sulthan Thaha Saifuddin Jambi, Indonesia,)

  • Muhamad Abduh

    (UBD School of Business and Economics, University of Brunei Darussalam, Brunei Darussalam.)

  • Urwawuska Ladini

    (Faculty of Economy and Islamic Business, UIN Sulthan Thaha Saifuddin Jambi, Indonesia)

  • Fadhlul mubarak

    (Faculty of Economy and Islamic Business, UIN Sulthan Thaha Saifuddin Jambi, Indonesia)

Abstract

Environmental problems are becoming an issue along with the issue of global warming whose impacts are increasingly being felt. Cases of environmental destruction in Indonesia are increasing, so several directions of government policies have started toward sustainable development goals (SDGs). The situation has challenged Islamic finance, an alternative financial system that is said to be the answer to the current toxic financial system, to prove itself to support the environment quality. This research aims to determine the impact of Islamic financial development, Gross Domestic Product (GDP), and population on the environmental quality in Indonesia using data spanning from 2016 to 2020. The results show that GDP significantly impacts the environmental quality of almost all major islands in Indonesia. Overall, in the territory of Indonesia Islamic financial development had a significantly negative effect at a significant level of 10% on environmental quality.

Suggested Citation

  • Titin Agustin Nengsih & Muhamad Abduh & Urwawuska Ladini & Fadhlul mubarak, 2023. "The Impact of Islamic Financial Development, GDP, and Population on Environmental Quality in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 7-13, January.
    • Handle: RePEc:eco:journ2:2023-01-2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Islamic Financial Development; Gross Domestic Product; Population; Environmental Quality;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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