Environmental Sustainability in Agricultural Economic Development in Indonesia

Abstract

This study analyzes AEG factors in Indonesia by evaluating the effect of OILC, ELC, GASC, CO2 emissions, and AGExp using time series data. This research takes a period of 35 years, namely from 1985-2020 by modeling the "auto regressive distributed lag" (ARDL) time series to estimate long-term and short-term relationships. This study uses secondary data from world bank, unstats.un.org, and ourworldindata.org. This research contributes as a complement to the study of literature related to agriculture economics, energy, and environmental sustainability within the scope of green economics. Practically, the findings of this study will be very useful for policymakers in Indonesia regarding agriculture economics, energy, and environmental sustainability. We found that In the long term CO2, GDP, AGExp, HAH, OILC, and GASC have a significant effect on AEG in Indonesia. However, ELC and PLA have no significant effect on AEG in Indonesia in the long term. The results of the short-term effect GDP, HAH, OILC, and GASC have a significant effect on AEG in Indonesia. Based on the ARDL results, it can be concluded that modern agricultural activities in Indonesia if not carried out carefully in the long term can degrade the environment, although in the short term it is not yet significant from the use of chemical fertilizers and pesticides, air pollution from burning fuel oil for diesel engines, and so on.