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

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

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 6, 170-178

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.

Keywords: Technology; ARDL; Innovation; environmental quality (search for similar items in EconPapers)
JEL-codes: O14 O34 Q01 Q56 (search for similar items in EconPapers)
Date: 2023
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