Spatial Footprint of Development: A Spatial Econometric Approach to Determining the Influence of Climate Quality in Indonesia
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Abstract
This study aims to identify the socio-economic and infrastructure effects on environmental quality across 34 provinces of Indonesia from 2019 – 2023. The analysis is conducted by using panel data and a Fixed Effects Model to analyze how population density, industrial activity, education level, sanitation access, road length, and electricity coverage influence the Environmental Quality Index (IKLH). The results show that education has a strong positive effect on environmental quality, highligting the essence of human capital in promoting sustainability. Sanitation, electricity, and road length also show moderate associations. However, population density and industrial share do not have any significant effect on environmental quality. A Moran’s I test on the residuals indicates no significant spatial autocorrelation, suggesting limited spatial dependence in environmental quality outcomes at the provincial level. The study emphasizes the need for investments in education and basic infrastructure to support environmental improvements, while also acknowledging limitations related to spatial resolution and model specification.
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