What drives decarbonization accountability? Evidence from Indonesian local governments

Habib Muhammad Shahib, Rahmat Syarif, Muhammad Chaerul and Nadya Daulay

Journal of Public Budgeting, Accounting & Financial Management, 2026, vol. 38, issue 4, 660-681

Abstract: PurposeAddressing the need for decarbonization accountability, this study aims to investigate what drives disclosure by Indonesian provincial governments. We assess whether reporting reflects proactive governance or is a reactive tool for managing legitimacy in a complex context where national climate ambitions meet intense local pressures.Design/methodology/approachA custom disclosure index based on Indonesia's national decarbonization regulation (Perpres No. 98/2021) was applied via manual content analysis to 180 official reports from 30 provinces (2018–2023). A three-model panel data strategy, including two-way fixed-effects and Mundlak/CRE models, was then employed to analyze how socio-environmental, economic and governance factors shape provincial government accountability.FindingsThe analysis reveals that disclosure is a practice of “reactive legitimacy.” It is strongly and positively driven by a province's economic capacity. The introduction of the national decarbonization regulation and the level of socio-environmental conflict both show a marginally significant positive influence. Conversely, proactive drivers, such as organized stakeholder pressure and a region's ecological capacity for carbon sequestration, were not found to be significant. This pattern indicates a critical “accountability gap” between national policy intent and local implementation.Originality/valueThis study provides the first multi-level analysis of decarbonization disclosure in the under-researched local government context in the global south. It offers empirical evidence of an “accountability gap” between symbolic, compliance-oriented reporting and the substantive accountability required for effective climate governance, offering valuable insights into both accountability theory and actionable policy recommendations.

Keywords: Accountability; Decarbonization; Disclosure; Local government; Environmental governance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jpbafm:jpbafm-06-2025-0151

DOI: 10.1108/JPBAFM-06-2025-0151

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