Pathways to Fiscal Sustainability: Green Literacy, Digital Inclusion, and Ecological Trust in Indonesia

M. Ikhwan Harbi () and Andi Aswan
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M. Ikhwan Harbi: Hasanuddin University
Andi Aswan: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 1108-1121 from Springer

Abstract: Abstract Fiscal sustainability in decentralised regions is increasingly recognised as dependent not only on financial resources but also on legitimacy, inclusivity, and environmental accountability. This study examines the influence of green fiscal literacy, digital fiscal inclusion, and ecological trust on sustainable fiscal capacity, with perceived budgetary fairness as a mediating construct, in the context of Majene and Polewali Regency, West Sulawesi. Grounded in fiscal legitimacy theory, the study adopts a quantitative explanatory design and collects primary data through structured questionnaires from 312 respondents drawn from the general public using a random sampling technique. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The measurement model demonstrated robust reliability and validity, with all indicators meeting recommended thresholds. Structural model results show that green fiscal literacy, digital fiscal inclusion, and ecological trust each exert significant positive effects on perceived budgetary fairness. Fairness itself strongly predicts sustainable fiscal capacity and partially mediates the relationships between the three independent variables and fiscal sustainability. The findings provide empirical support for extending fiscal legitimacy theory by incorporating cognitive, technological, and ecological dimensions, with fairness operating as a central mechanism that links them to fiscal sustainability. Practically, the results suggest that enhancing fiscal literacy with an environmental perspective, expanding digital participation, and fostering ecological trust through transparent commitments are critical strategies for local governments seeking to strengthen fiscal capacity. By situating the analysis within a decentralised Indonesian context, this study offers both theoretical enrichment and actionable insights into pathways for achieving sustainable fiscal governance.

Keywords: Green fiscal literacy; Digital fiscal inclusion; Ecological trust; Perceived budgetary fairness; Sustainable fiscal capacity (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-709-5_76

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DOI: 10.2991/978-94-6239-709-5_76

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