The Effects of Green Fiscal Spending, Domestic Investment, and Vertical Fiscal Inequality on Green Growth in Indonesia
摘要
Green growth is one of the strategies issues used to achieve sustainable development. This study aims to investigate the effect of green fiscal spending, domestic investment, vertical fiscal inequality on green growth in Indonesia. Panel Autoregressive Distributed Lag (PARDL) is employed to analyze the main concern of this study by using panel data of 33 provinces from 2010 to 2022. The results show that the vertical fiscal inequality negatively affects green growth in the long run. A higher vertical fiscal inequality leads to reduce domestic investment with green perspective in one side and enhance the occurrence of the increasing environmental degradation on the other side. Finally, it results in a lower green growth. However, the green fiscal spending positively affects green growth in the long run. Therefore, the government has a big role in promoting green technologies, strengthening environmental regulations, increasing public awareness, and adopting a balanced economic strategy that prioritizes long-term sustainability over short-term benefits.