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Green Finance, Innovation, Agriculture Finance and Sustainable Economic Development: The Case of Indonesia s Provincial Carbon Emissions

Author

Listed:
  • Sitti Aida Adha Taridala

    (Department of Agribusiness, Faculty of Agriculture, University of Halu Oleo, Indonesia,)

  • Wa Ode Alzarliani

    (Department of Agribusiness, Faculty of Agriculture, University of Muhammadyah Buton, Indonesia,)

  • Elys Fauziyah

    (Department of Agribusiness, Faculty of Agriculture, University of Trunojoyo Madura, Indonesia,)

  • Ilma Sarimustaqiyma Rianse

    (Department of Agribusiness, Faculty of Agriculture, University of Halu Oleo, Indonesia,)

  • Putu Arimbawa

    (Department of Agricultural Extension, Faculty of Agriculture, University of Halu Oleo, Indonesia.)

Abstract

Indonesia is struggling with utmost pressure to restrict carbon emissions as it is included in those emerging economies who are recognized as highest carbon emitters. Nevertheless, the Indonesian government is showing remarkable effort to reduce the emissions and set a planned goal to achieve low carbon economy. However, the major reliance on fossil fuels to maintain economic growth is creating obstacles for country. To explore that what tools could be helpful in the scenario to support country s goal. The study intends to measure the role green finance, innovation, agriculture finance and sustainable economic development in gauging carbon intensity. The paper used two indicators to measure sustainable economic development; GDP per capita and renewable energy consumption. The panel data is used in the study which is extracted from 30 provinces of Indonesia in the time span of 2006-2020. The study used OLS fixed effect model and quantile regression technique to assess the relationship between explained variable and explanatory variables. Findings echo that with the increase in economic growth, carbon intensity also starts increasing. However, green finance, innovation, agriculture finance and renewable energy are significant tools to reduce the emissions. Furthermore, confirmation of findings was done through quantile regression analysis. The paper presents several implications as well on the basis of empirical evidence which are of great help for country.

Suggested Citation

  • Sitti Aida Adha Taridala & Wa Ode Alzarliani & Elys Fauziyah & Ilma Sarimustaqiyma Rianse & Putu Arimbawa, 2023. "Green Finance, Innovation, Agriculture Finance and Sustainable Economic Development: The Case of Indonesia s Provincial Carbon Emissions," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 271-280, January.
    • Handle: RePEc:eco:journ2:2023-01-30
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    References listed on IDEAS

    as
    1. Adegbite, Olayinka O. & Machethe, Charles L., 2020. "Bridging the financial inclusion gender gap in smallholder agriculture in Nigeria: An untapped potential for sustainable development," World Development, Elsevier, vol. 127(C).
    2. Mohsin Ali & Mansor H. Ibrahim & Mohamed Eskandar Shah, 2022. "Impact Of Non-Intermediation Activities Of Banks On Economic Growth And Volatility: An Evidence From Oic," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 67(01), pages 333-348, March.
    3. Basheer M. Al‐Ghazali & Bilal Afsar, 2021. "Retracted: Green human resource management and employees' green creativity: The roles of green behavioral intention and individual green values," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 536-536, January.
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    Cited by:

    1. Trivedi, Jatin & Chakraborty, Dipanwita & Nobanee, Haitham, 2023. "Modelling the growth dynamics of sustainable renewable energy – Flourishing green financing," Energy Policy, Elsevier, vol. 183(C).

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    More about this item

    Keywords

    Green finance; Innovation; Sustainable economic development; renewable energy consumption; economic growth; agriculture finance;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • 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
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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