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[1] Ren, J., Chen, X., Gao, T., Chen, H., Shi, L., Shi, M. (2023). New digital infrastructure’s impact on agricultural eco-efficiency improvement: Influence mechanism and empirical test—Evidence from China. International Journal of Environmental Research and Public Health, 20(4): 3552. [Crossref]
[2] Lai, Y., Yang, H., Qiu, F., Dang, Z., Luo, Y. (2023). Can rural industrial integration alleviate agricultural non-point source pollution? Evidence from rural China. Agriculture, 13(7) 1389. [Crossref]
[3] Turillazzi, B., Leoni, G., Gaspari, J., Massari, M., Boulanger, S.O.M. (2021). Cultural heritage and digital tools: The ROCK interoperable platform. International Journal of Environmental Impacts, 4(3): 276-288. [Crossref]
[4] Nchofoung, T.N., Asongu, S.A. (2022). Effects of infrastructures on environmental quality contingent on trade openness and governance dynamics in Africa. Renewable Energy, 189: 152-163. [Crossref]
[5] Nzumile, J.M., Taifa, I.W. (2021). Emperical analysis of the quality infrastructure in trade facilitation within the African Continental Free Trade. Business Education Journal, 7(1): 1-12. [Crossref]
[6] Zahra, S., Khan, D., Gupta, R., Popp, J., Oláh, J. (2022). Assessing the asymmetric impact of physical infrastructure and trade openness on ecological footprint: An empirical evidence from Pakistan. Plos One, 17(5): e0262782. [Crossref]
[7] Alhassan, A., Usman, O., Ike, G.N., Sarkodie, S.A. (2020). Impact assessment of trade on environmental performance: Accounting for the role of government integrity and economic development in 79 countries. Heliyon, 6(9): e05046. [Crossref]
[8] Arsyad, L. (2005). Pengantar Perencanaan Pembangunan Ekonomi Daerah. Edisi Kedua. Penerbit BPFE-UGM. Yogyakarta.
[9] Patnaik, R. (2018). Impact of industrialization on the environment and sustainable solutions–Reflections from a south Indian region. IOP Conference Series: Earth and Environmental Science, 120: 012016. [Crossref]
[10] Oláh, J., Aburumman, N., Popp, J., Khan, M.A., Haddad, H., Kitukutha, N. (2020). Impact of Industry 4.0 on environmental sustainability. Sustainability, 12(11): 4674. [Crossref]
[11] Hunjra, A. I., Tayachi, T., Chani, M. I., Verhoeven, P., Mehmood, A. (2020). The moderating effect of institutional quality on the financial development and environmental quality nexus. Sustainability, 12(9): 3805. [Crossref]
[12] Bleischwitz, R. (2010). Resource productivity dynamics: A cross-country overview and policies. In 3rd International Wuppertal Colloquium on “Sustainable Growth and Resource Productivity – Harnessing Industry and Policy Towards Eco-Innovation”, Brussels.
[13] Tyagi, S., Garg, N., Paudel, R. (2014). Environmental degradation: Causes and consequences. European Researcher, 81(8-2): 1491. [Crossref]
[14] Laopodis, N.T. (2020). Understanding Investments: Theories and Strategies. Routledge.
[15] Ullah, I., Shah, M., Khan, F.U. (2014). Domestic investment, foreign direct investment, and economic growth nexus: A case of Pakistan. Economics Research International, 2014(1): 592719. [Crossref]
[16] Gunarto, T. (2020). Effect of economic growth and foreign direct investment on carbon emission in the Asian States. International Journal of Energy Economics and Policy, 10(5): 563-569. [Crossref]
[17] Qiu, Y., Niu, J., Zhang, L. (2022). The influence of foreign direct investment and economic development on environmental pollution. In 2021 International Conference on Culture, Design and Social Development (CDSD 2021), pp. 67-71. [Crossref]
[18] Bediako, F.E., Twerefou, D.K., Codjoe, E. (2022). Effect of foreign direct investment on environmental quality in West Africa. West African Journal of Applied Ecology, 30(2): 86-93.
[19] Awodumi, O.B. (2023). Does foreign direct investment matter for environmental innovation in African economies? Economic Change and Restructuring, 56(1): 237-263. [Crossref]
[20] Li, Z., Dong, H., Huang, Z., Failler, P. (2019). Impact of foreign direct investment on environmental performance. Sustainability, 11(13): 3538. [Crossref]
[21] Harris, D., Fuller, D. (2013). Agriculture: Definition and Overview. Springer.
[22] Balogh, J.M., Jámbor, A. (2020). The environmental impacts of agricultural trade: A systematic literature review. Sustainability, 12(3): 1152. [Crossref]
[23] Ogunleye, O., Ajibola, A., Enilolobo, O., Shogunle, O. (2018). Influence of road transport infrastructure on agricultural sector development in Nigeria. Logistics, Supply Chain, Sustainability and Global Challenges, 9(1): 39-50. [Crossref]
[24] Maryati, S., Firman, T., Siti Humaira, A.N., Febriani, Y.T. (2020). Benefit distribution of community-based infrastructure: Agricultural roads in Indonesia. Sustainability, 12(5): 2085. [Crossref]
[25] Baba, S.H., Saini, A.S., Sharma, K.D., Thakur, D.R. (2010). Impact of investment on agricultural growth and rural development in Himachal Pradesh: Dynamics of public and private investment. Indian Journal of Agricultural Economics, 65(1): 135-158.
[26] Djokoto, J.G. (2012). Effects of foreign direct investment inflows into agriculture on food security in Ghana. Journal of Economics and Sustainable Development, 3(2): 81-92.
[27] Rohila, A.K., Maan, D., Kumar, A., Kumar, K. (2017). Impact of agricultural practices on the environment. Asian Journal of Microbiology, Biotechnology and Environmental Sciences, 19(2): 145-148.
[28] Noubissi Domguia, E., Njangang, H. (2019). Agricultural growth and environmental quality in Cameroon: Evidence from ARDL bound testing approach. MPRA Paper.
[29] Sheraz, M., Deyi, X., Ahmed, J., Ullah, S., Ullah, A. (2021). Moderating the effect of globalization on financial development, energy consumption, human capital, and carbon emissions: Evidence from G20 countries. Environmental Science and Pollution Research, 28: 35126-35144. [Crossref]
[30] Belloumi, M., Alshehry, A. (2020). The impact of international trade on sustainable development in Saudi Arabia. Sustainability, 12(13): 5421. [Crossref]
[31] Sholihah, I.M.A., Syaparuddin, S., Nurhayani, N. (2017). Analisis investasi sektor industri manufaktur, pengaruhnya terhadap pertumbuhan ekonomi dan penyerapan tenaga kerja di Indonesia. Jurnal Paradigma Ekonomika, 12(1): 11-24. [Crossref]
[32] Shehnaz, Idrees, T., Mir, K.A. (2018). Impact of infrastructure and institutional quality on industrial sector of Pakistan. Jinnah Business Review, 7(1): 20-26. [Crossref]
[33] Wang, K., Cui, W., Mei, M., Lv, B., Peng, G. (2023). The moderating role of environmental information disclosure on the impact of environment protection investment on firm value. Sustainability, 15(12): 9174. [Crossref]
[34] Cai, S.Y., Tan, W.Y. (2022). Strategies for building resilience of 15-minute community life circles from the perspective of pandemic. International Journal of Environmental Impacts, 5(3): 249-258. [Crossref]
[35] Bespalov, V.I., Kotlyarova, E.V. (2021). Features of the negative impact of modern infrastructure facilities in urbanized areas on the environment. IOP Conference Series: Earth and Environmental Science, 937(4): 042036. [Crossref]
[36] Teo, H.C., Lechner, A.M., Walton, G.W., et al. (2019). Environmental impacts of infrastructure development under the belt and road initiative. Environments, 6(6): 72. [Crossref]
[37] Robinah, N., Safiki, A., Thomas, O., Annette, B. (2022). Impact of road infrastructure equipment on the environment and surroundings. Global Journal of Environmental Science and Management, 8(2): 251-264. [Crossref]
[38] Halicioglu, F., Ketenci, N. (2015). The impact of international trade on environmental quality in transition countries: evidence from time series data during 1991-2013. In 17th Annual Conference of ETSG, Paris, France, pp. 10-12.
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Open Access
Research article

Environmental Quality Analysis from the Perspective of Infrastructure Development and Investment Policy in Indonesia

Zikri Alhadi1*,
erasukma munaf2
1
Department of Public Administration & Research Center for Rural and Urban Studies, Universitas Negeri Padang, Padang 25132, Indonesia
2
West Sumatra Provincial Government, Universitas Negeri Padang, 25132 Padang, Indonesia
International Journal of Environmental Impacts
|
Volume 7, Issue 3, 2024
|
Pages 543-559
Received: 08-05-2024,
Revised: 09-14-2024,
Accepted: 09-20-2024,
Available online: 09-29-2024
View Full Article|Download PDF

Abstract:

The primary objective of the research is to ascertain the degree to which infrastructure affects environmental quality. The investigation employed a quantitative methodology, utilizing secondary data along with panel data derived from 34 provinces in Indonesia spanning the years 2015 to 2019. The panel data regression analysis was executed utilizing the standard effect model in Statistical Package for the Social Sciences (SPSS), followed by the application of Moderate Regression Analysis (MRA). The findings of the research indicated the following: first, the results elucidated that infrastructure exerts a significant positive influence on environmental quality. Second, investments were found to have a substantial adverse effect on environmental quality. Third, the agricultural sector was shown to impose a significant negative impact on environmental quality as a consequence of infrastructure. Fourth, the trade sector demonstrates a beneficial and substantial moderating effect on the relationship between infrastructure and environmental quality. Fifth, the industrial sector exhibits a favorable and considerable moderating influence on the interplay between infrastructure and environmental quality. Sixth, the agricultural sector does not constrain the effect of investment on environmental quality. Seventh, the trade sector moderates the negative and significant influence of investment on environmental quality. Eighth, the industrial sector moderates the negative and substantial effect of investment on environmental quality.

Keywords: Environmental quality, Sustainability, Infrastructure development, Investment, Policy
Data Availability

The data used to support the findings of this study are available from the corresponding author upon request.

Acknowledgments

The Research Team dramatically appreciates and thanks Universitas Negeri Padang for conducting this research.

Conflicts of Interest

The authors declare that they have no conflicts of interest.

References
[1] Ren, J., Chen, X., Gao, T., Chen, H., Shi, L., Shi, M. (2023). New digital infrastructure’s impact on agricultural eco-efficiency improvement: Influence mechanism and empirical test—Evidence from China. International Journal of Environmental Research and Public Health, 20(4): 3552. [Crossref]
[2] Lai, Y., Yang, H., Qiu, F., Dang, Z., Luo, Y. (2023). Can rural industrial integration alleviate agricultural non-point source pollution? Evidence from rural China. Agriculture, 13(7) 1389. [Crossref]
[3] Turillazzi, B., Leoni, G., Gaspari, J., Massari, M., Boulanger, S.O.M. (2021). Cultural heritage and digital tools: The ROCK interoperable platform. International Journal of Environmental Impacts, 4(3): 276-288. [Crossref]
[4] Nchofoung, T.N., Asongu, S.A. (2022). Effects of infrastructures on environmental quality contingent on trade openness and governance dynamics in Africa. Renewable Energy, 189: 152-163. [Crossref]
[5] Nzumile, J.M., Taifa, I.W. (2021). Emperical analysis of the quality infrastructure in trade facilitation within the African Continental Free Trade. Business Education Journal, 7(1): 1-12. [Crossref]
[6] Zahra, S., Khan, D., Gupta, R., Popp, J., Oláh, J. (2022). Assessing the asymmetric impact of physical infrastructure and trade openness on ecological footprint: An empirical evidence from Pakistan. Plos One, 17(5): e0262782. [Crossref]
[7] Alhassan, A., Usman, O., Ike, G.N., Sarkodie, S.A. (2020). Impact assessment of trade on environmental performance: Accounting for the role of government integrity and economic development in 79 countries. Heliyon, 6(9): e05046. [Crossref]
[8] Arsyad, L. (2005). Pengantar Perencanaan Pembangunan Ekonomi Daerah. Edisi Kedua. Penerbit BPFE-UGM. Yogyakarta.
[9] Patnaik, R. (2018). Impact of industrialization on the environment and sustainable solutions–Reflections from a south Indian region. IOP Conference Series: Earth and Environmental Science, 120: 012016. [Crossref]
[10] Oláh, J., Aburumman, N., Popp, J., Khan, M.A., Haddad, H., Kitukutha, N. (2020). Impact of Industry 4.0 on environmental sustainability. Sustainability, 12(11): 4674. [Crossref]
[11] Hunjra, A. I., Tayachi, T., Chani, M. I., Verhoeven, P., Mehmood, A. (2020). The moderating effect of institutional quality on the financial development and environmental quality nexus. Sustainability, 12(9): 3805. [Crossref]
[12] Bleischwitz, R. (2010). Resource productivity dynamics: A cross-country overview and policies. In 3rd International Wuppertal Colloquium on “Sustainable Growth and Resource Productivity – Harnessing Industry and Policy Towards Eco-Innovation”, Brussels.
[13] Tyagi, S., Garg, N., Paudel, R. (2014). Environmental degradation: Causes and consequences. European Researcher, 81(8-2): 1491. [Crossref]
[14] Laopodis, N.T. (2020). Understanding Investments: Theories and Strategies. Routledge.
[15] Ullah, I., Shah, M., Khan, F.U. (2014). Domestic investment, foreign direct investment, and economic growth nexus: A case of Pakistan. Economics Research International, 2014(1): 592719. [Crossref]
[16] Gunarto, T. (2020). Effect of economic growth and foreign direct investment on carbon emission in the Asian States. International Journal of Energy Economics and Policy, 10(5): 563-569. [Crossref]
[17] Qiu, Y., Niu, J., Zhang, L. (2022). The influence of foreign direct investment and economic development on environmental pollution. In 2021 International Conference on Culture, Design and Social Development (CDSD 2021), pp. 67-71. [Crossref]
[18] Bediako, F.E., Twerefou, D.K., Codjoe, E. (2022). Effect of foreign direct investment on environmental quality in West Africa. West African Journal of Applied Ecology, 30(2): 86-93.
[19] Awodumi, O.B. (2023). Does foreign direct investment matter for environmental innovation in African economies? Economic Change and Restructuring, 56(1): 237-263. [Crossref]
[20] Li, Z., Dong, H., Huang, Z., Failler, P. (2019). Impact of foreign direct investment on environmental performance. Sustainability, 11(13): 3538. [Crossref]
[21] Harris, D., Fuller, D. (2013). Agriculture: Definition and Overview. Springer.
[22] Balogh, J.M., Jámbor, A. (2020). The environmental impacts of agricultural trade: A systematic literature review. Sustainability, 12(3): 1152. [Crossref]
[23] Ogunleye, O., Ajibola, A., Enilolobo, O., Shogunle, O. (2018). Influence of road transport infrastructure on agricultural sector development in Nigeria. Logistics, Supply Chain, Sustainability and Global Challenges, 9(1): 39-50. [Crossref]
[24] Maryati, S., Firman, T., Siti Humaira, A.N., Febriani, Y.T. (2020). Benefit distribution of community-based infrastructure: Agricultural roads in Indonesia. Sustainability, 12(5): 2085. [Crossref]
[25] Baba, S.H., Saini, A.S., Sharma, K.D., Thakur, D.R. (2010). Impact of investment on agricultural growth and rural development in Himachal Pradesh: Dynamics of public and private investment. Indian Journal of Agricultural Economics, 65(1): 135-158.
[26] Djokoto, J.G. (2012). Effects of foreign direct investment inflows into agriculture on food security in Ghana. Journal of Economics and Sustainable Development, 3(2): 81-92.
[27] Rohila, A.K., Maan, D., Kumar, A., Kumar, K. (2017). Impact of agricultural practices on the environment. Asian Journal of Microbiology, Biotechnology and Environmental Sciences, 19(2): 145-148.
[28] Noubissi Domguia, E., Njangang, H. (2019). Agricultural growth and environmental quality in Cameroon: Evidence from ARDL bound testing approach. MPRA Paper.
[29] Sheraz, M., Deyi, X., Ahmed, J., Ullah, S., Ullah, A. (2021). Moderating the effect of globalization on financial development, energy consumption, human capital, and carbon emissions: Evidence from G20 countries. Environmental Science and Pollution Research, 28: 35126-35144. [Crossref]
[30] Belloumi, M., Alshehry, A. (2020). The impact of international trade on sustainable development in Saudi Arabia. Sustainability, 12(13): 5421. [Crossref]
[31] Sholihah, I.M.A., Syaparuddin, S., Nurhayani, N. (2017). Analisis investasi sektor industri manufaktur, pengaruhnya terhadap pertumbuhan ekonomi dan penyerapan tenaga kerja di Indonesia. Jurnal Paradigma Ekonomika, 12(1): 11-24. [Crossref]
[32] Shehnaz, Idrees, T., Mir, K.A. (2018). Impact of infrastructure and institutional quality on industrial sector of Pakistan. Jinnah Business Review, 7(1): 20-26. [Crossref]
[33] Wang, K., Cui, W., Mei, M., Lv, B., Peng, G. (2023). The moderating role of environmental information disclosure on the impact of environment protection investment on firm value. Sustainability, 15(12): 9174. [Crossref]
[34] Cai, S.Y., Tan, W.Y. (2022). Strategies for building resilience of 15-minute community life circles from the perspective of pandemic. International Journal of Environmental Impacts, 5(3): 249-258. [Crossref]
[35] Bespalov, V.I., Kotlyarova, E.V. (2021). Features of the negative impact of modern infrastructure facilities in urbanized areas on the environment. IOP Conference Series: Earth and Environmental Science, 937(4): 042036. [Crossref]
[36] Teo, H.C., Lechner, A.M., Walton, G.W., et al. (2019). Environmental impacts of infrastructure development under the belt and road initiative. Environments, 6(6): 72. [Crossref]
[37] Robinah, N., Safiki, A., Thomas, O., Annette, B. (2022). Impact of road infrastructure equipment on the environment and surroundings. Global Journal of Environmental Science and Management, 8(2): 251-264. [Crossref]
[38] Halicioglu, F., Ketenci, N. (2015). The impact of international trade on environmental quality in transition countries: evidence from time series data during 1991-2013. In 17th Annual Conference of ETSG, Paris, France, pp. 10-12.
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Alhadi, Z. & Munaf, E. (2024). Environmental Quality Analysis from the Perspective of Infrastructure Development and Investment Policy in Indonesia. Int. J. Environ. Impacts., 7(3), 543-559. https://doi.org/10.18280/ijei.070316
Z. Alhadi and E. Munaf, "Environmental Quality Analysis from the Perspective of Infrastructure Development and Investment Policy in Indonesia," Int. J. Environ. Impacts., vol. 7, no. 3, pp. 543-559, 2024. https://doi.org/10.18280/ijei.070316
@research-article{Alhadi2024EnvironmentalQA,
title={Environmental Quality Analysis from the Perspective of Infrastructure Development and Investment Policy in Indonesia},
author={Zikri Alhadi and Erasukma Munaf},
journal={International Journal of Environmental Impacts},
year={2024},
page={543-559},
doi={https://doi.org/10.18280/ijei.070316}
}
Zikri Alhadi, et al. "Environmental Quality Analysis from the Perspective of Infrastructure Development and Investment Policy in Indonesia." International Journal of Environmental Impacts, v 7, pp 543-559. doi: https://doi.org/10.18280/ijei.070316
Zikri Alhadi and Erasukma Munaf. "Environmental Quality Analysis from the Perspective of Infrastructure Development and Investment Policy in Indonesia." International Journal of Environmental Impacts, 7, (2024): 543-559. doi: https://doi.org/10.18280/ijei.070316
ALHADI Z， MUNAF E. Environmental Quality Analysis from the Perspective of Infrastructure Development and Investment Policy in Indonesia[J]. International Journal of Environmental Impacts， 2024， 7(3)： 543-559. https://doi.org/10.18280/ijei.070316