DOI: https://doi.org/10.19184/jpwp.v4i1.60004

Abstract

Sustainable development requires a balance between economic growth, institutional innovation, and environmental conservation. The advancement of digital transformation and the enhancement of local government innovation capacity have become strategic factors in improving environmental quality in Indonesia. This study aims to analyze the effects of the Digital Competitiveness Index, the Regional Innovation Index, and Environmental Expenditure on the Environmental Quality Index across 34 provinces in Indonesia during the period 2020–2024. This research employs a quantitative explanatory approach using panel data regression methods. The data used are secondary data obtained from Statistics Indonesia (BPS), the Ministry of Environment and Forestry, the National Research and Innovation Agency (BRIN), and East Ventures. Model selection was conducted using the Chow test and Hausman test, resulting in the Fixed Effect Model as the most appropriate estimation model. The results indicate that the Digital Competitiveness Index and the Regional Innovation Index have a positive and significant effect on the Environmental Quality Index. Meanwhile, environmental expenditure does not have a significant effect on environmental quality.

Keywords: Sustainable Development, Digital Competitiveness, Regional Innovation, Environmental Quality