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Innovating for Sustainability: The Intersection of Technology and Environmental Quality in Indonesia

Author

Listed:
  • Tri Kurniawati

    (Faculty of Economics and Business Universitas Negeri Padang, Jln. Prof Hamka Air Tawar Padang, West Sumatera, Indonesia,)

  • Rani Sofya

    (Faculty of Economics and Business Universitas Negeri Padang, Jln. Prof Hamka Air Tawar Padang, West Sumatera, Indonesia,)

  • Rita Syofyan

    (Faculty of Economics and Business Universitas Negeri Padang, Jln. Prof Hamka Air Tawar Padang, West Sumatera, Indonesia,)

  • Nita Sofia

    (Faculty of Economics and Business Universitas Negeri Padang, Jln. Prof Hamka Air Tawar Padang, West Sumatera, Indonesia,)

  • Abdul Rahim Ridzuan

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Campus, Alor Gajah 78000, Malaysia; Institute for Big Data Analytics and Artificial Intelligence, Universiti Teknologi MARA, Shah Alam 40450, Malaysia; Centre for Economic Development and Policy, Universiti Malaysia Sabah, Kota Kinabalu 88400, Malaysia; Institute for Research on Socio Economic Policy, Universiti Teknologi MARA, Shah Alam 40450, Malaysia; Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, 40450, Malaysia,)

  • Mohd Shahidan Md Shaari

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Arau Perlis, Malaysia.)

Abstract

In this study, we placed significant emphasis on the impact of technology on environmental quality in Indonesia. Technology plays a vital role in the country's progression towards becoming a developed nation; however, it brings both advantages and disadvantages. Indonesia has witnessed substantial economic growth, closely linked to the development and adoption of technology, whether domestically generated or through foreign direct investment (FDI). The primary objective of this study is to investigate the influence of technology and other key macroeconomic variables such as economic growth, FDI, income distribution, globalization, electricity, and urbanization on the level of carbon emissions. The study utilizes annual time series data spanning from 1990 to 2020. The main findings of the study confirm that technology has the potential to reduce environmental pollution levels in the country. However, the impact of other variables on environmental pollution displays a mixed result. Policymakers should pay attention to the significant role of technology and promote government programs that support innovation as a means to address environmental concerns effectively. By doing so, the nation can leverage technology to foster sustainable development and mitigate the adverse impacts of industrialization on the environment.

Suggested Citation

  • Tri Kurniawati & Rani Sofya & Rita Syofyan & Nita Sofia & Abdul Rahim Ridzuan & Mohd Shahidan Md Shaari, 2023. "Innovating for Sustainability: The Intersection of Technology and Environmental Quality in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 170-178, November.
    • Handle: RePEc:eco:journ2:2023-06-18
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    More about this item

    Keywords

    Technology; ARDL; Innovation; environmental quality;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • 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

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