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

Open

Tri Kurniawati, Rani Sofya, Rita Syofyan, Nita Sofia, Abdul Rahim Ridzuan, Mohd Shahidan Shaari

2023 International Journal of Energy Economics and Policy Vol. 13 Issue 6 Article Cited by 2 Quartile

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. © 2023, Econjournals. All rights reserved.

Affiliations

Faculty of Economics and Business, Universitas Negeri Padang, Jln. Prof Hamka Air Tawar, West Sumatera, Padang, Indonesia; 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; Faculty of Business and Communication, Universiti Malaysia Perlis, Perlis, Arau, Malaysia