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

Ilham Syah Azikin, Dian Anggriani Utina, Bahtiar Maddatuang, Nurfaisah Baharuddin, Abdul Rahim Ridzuan and Nur Hayati Abd Rahman
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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

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 1, 441-446

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.

Keywords: Environmental Quality; Public Debt; Time Series; Macroeconomic (search for similar items in EconPapers)
JEL-codes: E00 O32 Q56 (search for similar items in EconPapers)
Date: 2024
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