Lecturer at the Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM), Data Avicenna, S.E., M.Ec.Pol. has contributed to the international publication Accelerating Climate Action in Asia and the Pacific: Fiscal Policy Solutions, published by the Asian Development Bank Institute (ADBI) in collaboration with SOAS University of London.
In the publication, Data Avicenna, together with three other researchers Ega Kurnia Yazid (Research Fellow at the Decarbonization and Development Lab, CSIS Indonesia), Kelvin Ramadhan Hidayat (Independent Researcher), and Muhammad Faiz Zaidan Alharkan (Master’s student in Mineral and Energy Economics at Colorado School of Mines) authored Chapter 10 entitled “Assessing Local Environmental Spending and Air Pollution Reduction in Indonesia: A Satellite Data Approach.”
Through this study, the research team examined the extent to which local government environmental spending contributes to reducing air pollution levels in Indonesia. The study used satellite data to measure air quality and is among the earliest systematic analyses in Indonesia to explore the relationship between local environmental expenditures and pollution levels at the district and municipal levels.
The research employed longitudinal data from 474 districts and municipalities across Indonesia from 2012 to 2019. The findings reveal that increased environmental spending is significantly associated with reduced growth in nitrogen dioxide (NO₂) pollution.
“These findings indicate a relationship between increased local environmental spending and a slowdown in the growth of NO₂ pollution, which is generally linked to fuel combustion activities, particularly in the transportation sector,” said Data Avicenna.
However, the study did not find a significant relationship between environmental spending and reductions in sulfur dioxide (SO₂) pollution. According to the datathe data, this result suggests that the impact of environmental spending on air pollution may vary by pollutant type. Environmental expenditures appear to be more closely associated with mitigating growth in transportation-related pollution, whereas their relationship with industrial pollution remains statistically insignificant.
Beyond providing insights into the effectiveness of environmental policies, the research also highlights the importance of utilizing satellite technology to support public policy evaluation. This approach is particularly relevant for developing countries, including Indonesia, where ground-based air quality monitoring networks remain limited.
The book Accelerating Climate Action in Asia and the Pacific: Fiscal Policy Solutions brings together a range of studies examining the role of fiscal policy in accelerating climate action across the Asia-Pacific region. Data Avicenna’s contribution to this publication reflects FEB UGM’s commitment to producing scientific evidence that supports more effective environmental policymaking while contributing to Indonesia’s efforts to achieve its net-zero emissions target.
Reported by: Kurnia Ekaptiningrum
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