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How do Environmental Quality and Technology Affect Public Debt in Indonesia? A Time Series Analysis

Author

Listed:
  • Ilham Syah Azikin

    (Department of Management, Sekolah Tinggi Ilmu Ekonomi AMKOP, Indonesia)

  • Dian Anggriani Utina

    (Department of Management, Sekolah Tinggi Ilmu Ekonomi AMKOP, Indonesia)

  • Bahtiar Maddatuang

    (Department of Management, Sekolah Tinggi Ilmu Ekonomi AMKOP, Indonesia)

  • Nurfaisah Baharuddin

    (Department of Management, Sekolah Tinggi Ilmu Ekonomi AMKOP, Indonesia)

  • Abdul Rahim Ridzuan

    (Institute for Big Data Analytics and Artificial Intelligence, Universiti Teknologi MARA, Shah Alam, Malaysia; & Department of Management, University of Religions and Denominations, Qom, Iran; & Centre for Economic Development and Policy, Universiti Malaysia Sabah, Kota Kinabalu, Malaysia; & Faculty of Business and Management, Universiti Teknologi MARA, Malaysia; & Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Malaysia)

  • Nur Hayati Abd Rahman

    (Faculty of Business and Management, Universiti Teknologi MARA Melaka Campus, Malaysia)

Abstract

In recent years, Indonesia has grappled with a notable surge in public debt, underscoring the urgency of prudent fiscal management. This study employs the Autoregressive Distributed Lag (ARDL) method to investigate the long-term connections between key variables, including gross domestic product, gross domestic investment, gross domestic savings, carbon emissions, and technology, using data from 1990 to 2020. Our findings reveal a significant and negative association between savings and environmental degradation with Indonesia's public debt. These insights bear substantial policy implications, emphasizing the importance of integrating environmental considerations into economic planning and suggesting that the banking sector could enhance fiscal stability by incentivizing increased savings rates. This study provides valuable guidance for policymakers and economists seeking to foster Indonesia's economic resilience in the face of mounting public debt.

Suggested Citation

  • Ilham Syah Azikin & Dian Anggriani Utina & Bahtiar Maddatuang & Nurfaisah Baharuddin & Abdul Rahim Ridzuan & Nur Hayati Abd Rahman, 2024. "How do Environmental Quality and Technology Affect Public Debt in Indonesia? A Time Series Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 441-446, January.
    • Handle: RePEc:eco:journ2:2024-01-48
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental Quality; Public Debt; Time Series; Macroeconomic;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • 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
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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