The Impact of Islamic Financial Development, GDP, and Population on Environmental Quality in Indonesia

Abstract

Environmental problems are becoming an issue along with the issue of global warming whose impacts are increasingly being felt. Cases of environmental destruction in Indonesia are increasing, so several directions of government policies have started toward sustainable development goals (SDGs). The situation has challenged Islamic finance, an alternative financial system that is said to be the answer to the current toxic financial system, to prove itself to support the environment quality. This research aims to determine the impact of Islamic financial development, Gross Domestic Product (GDP), and population on the environmental quality in Indonesia using data spanning from 2016 to 2020. The results show that GDP significantly impacts the environmental quality of almost all major islands in Indonesia. Overall, in the territory of Indonesia Islamic financial development had a significantly negative effect at a significant level of 10% on environmental quality.

Generalized Structured Component Analysis pada Hubungan antara Pengelolaan Lingkungan, Faktor Sosial, dan Kualitas Lingkungan

“…Seperti halnya penelitian yang telah dilakukan dimana pertumbuhan penduduk berdampak pada emisi CO2 tahun 1990-2018 di Indonesia (Dong et al, 2018;Mendonça et al, 2020;Zulaicha et al, 2020). Begitu pula pada faktor ekonomi seperti pembiayaan ekonomi dan PDB menggunakan analisis regresi data panel bahwa secara keseluruhan PDB berdampak signifikan terhadap kualitas lingkungan di hampir semua pula besar di Indonesia, sedangkan perkembangan keuangan syariah berpengaruh negatif secara signifikan terhadap kualitas lingkungan (Nengsih et al, 2023). Oleh karena itu, penelitian terkait hubungan kualitas lingkungan dengan faktor sosial ekonomi masih penting dilakukan, tertutama dalam melihat pola model hubungan antar ketiganya.…”

The Impact Of Islamic Finance, Economic Growth, And Globalization On CO2 Emissions

“…Apart from discussing the development of Islamic finance concerning environmental quality, scholars have also long-discussed economic growth in connection with ecological quality (Nengsih et al, 2023). Asian countries show that Gross Domestic Product (GDP) significantly influences increasing CO2 emissions in the early stages, with Turkey, Thailand, Saudi Arabia, Qatar, Pakistan, Kuwait, Japan, and Indonesia producing higher CO2 emissions (Adeneye et al, 2021).…”

“…Previous research investigating the influence of Islamic finance, economic growth, or globalization on carbon dioxide emissions still shows different results. In particular, investigations into the impact of Islamic finance on carbon dioxide emissions are still relatively small and still use the usual panel data regression estimation method, such as in the research of (Abduh et al, 2022) and (Nengsih et al, 2023). Therefore, this scientific article analyzes the influence of Islamic finance, economic growth, and globalization on carbon dioxide emissions in 4 countries for the period 2015-2020.…”

Product Quality towards Brand Loyalty in the Cosmetic Industry

“…However, in today's dynamic marketplace, characterized by intense competition and evolving consumer behaviors, maintaining and nurturing brand loyalty poses a significant challenge for companies. The cosmetic industry is characterized by intense competition, featuring numerous brands offering similar products, thus making it convenient for consumers to switch between brands [2]. Additionally, consumers' preferences and behaviors are constantly evolving, making it challenging for brands to keep up with their changing needs and expectations [3].…”