Perkembangan Perbankan Syariah dan Degradasi Lingkungan di Indonesia: Analisis Hubungan Jangka Panjang dan Jangka Pendek
Keywords:
Islamic banking, environmental degradation, EKC, ARDL, ECM
Abstract
This study aims to analyze the long-term and short-term dynamic relationship between the development of Islamic banking and CO2 emissions in Indonesia within the framework of the Environmental Kuznets Curve (EKC) hypothesis in the period 1995-2021. This study uses the Auto Regressive Distributed Lag (ARDL) and Error Correction Mechanism (ECM) techniques to test the existence of long-term and short-term relationships between variables. The results show that in the long-term relationship model, the square of economic growth, development of Islamic banking, and investment, has a significant effect on the amount of carbon emissions in Indonesia. Furthermore, the development of Islamic banking and energy consumption in the form of CO2 emissions in Indonesia has a significant negative relationship. This means that carbon emissions will decrease along with the development of Islamic banking through Islamic financing. In the short-term relationship model, it is found that the square of growth, investment, and urban population has a significant effect on carbon emissions in Indonesia. While other variables, namely economic growth and development of Islamic banking in Indonesia, do not show a significant effect on carbon emissions in Indonesia. Specifically, the results of the study did not find the presence of EKC for the Indonesian case.
References
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Nazir, M. (2011). Metode Penelitian. Ghalia Indonesia.
Omri, A., Saida, D., Rault, C., & Chaibi, A. (2015). Financial development, environmental quality, trade and economic growth: What causes what in MENA countries. Energy Economics.
Osabuohien, E., Efobi, U., & Gitau, C. (2014). Beyond the Environmental Kuznets Curve in Africa: Evidence from Panel Cointegration. Journal of Environmental Policy & Planning, 16. https://doi.org/10.1080/1523908X.2013.867802
Pesaran, H., Smith, R., & Shin, Y. (2001). Bound Testing Approaches to the Analysis of Level Relationship. Journal of Applied Econometrics, 16, 289–326. https://doi.org/10.1002/jae.616.
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Rehman, I. (2014). Multivariate-based Granger causality between financial deepening and poverty: the case of Pakistan. Quality & Quantity, 48. https://doi.org/10.1007/s11135-013-9952-z.
Riti, J., Song, D., Shu, Y., & Kamah, M. (2017). The contribution of energy use and financial development by source in climate change mitigation process: A global empirical perspective. Journal of Cleaner Production, 148. https://doi.org/10.1016/j.jclepro.2017.02.037.
Saboori, B., Sulaiman, J., & Mohd, S. (2012). Economic growth and CO2 emissions in Malaysia: a cointegration analysis of the environmental Kuznets curve. Energy Policy, 51, 184–191.
Salahuddin, M., Alam, K., & Sohag, K. (2017). The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO 2 emissions in Kuwait. Renewable and Sustainable Energy Reviews. https://doi.org/10.1016/j.rser.2017.06.009
Saud, S., Baloch, M. A., & Lodhi, R. N. (2018). The nexus between energy consumption and financial development: estimating the role of globalization in Next-11 countries. Environmental Science and Pollution Research, 25(19), 18651–18661.
Shahbaz, M., & Islam, F. (2011). Financial development and income inequality in Pakistan: an application of ARDL approach.
Shahbaz, M., Mallick, H., Mahalik, M. K., & Loganathan, N. (2015). Does globalization impede environmental quality in India? Ecological Indicators, 52, 379–393.
Tamazian, A., Piñeiro, J., & Vadlamannati, K. (2009). Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries. Energy Policy, 37, 246–253. https://doi.org/10.1016/j.enpol.2008.08.025.
Tamazian, A., & Rao, B. (2010). Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies. Energy Economics, 32, 137–145. https://doi.org/10.1016/j.eneco.2009.04.004.
Tiwari, A., & Nasir, M. (2013). The Effects of Financial Development, Economic Growth, Coal Consumption and Trade Openness on Environment Performance in South Africa. Energy Policy, 61. https://doi.org/10.1016/j.enpol.2013.07.006.
Uddin, G. S., Shahbaz, M., Arouri, M., & Teulon, F. (2014). Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh. Economic Modelling, 36, 405–412.
Vij, S., & Bedi, H. S. (2016). Effect of organisational and environmental factors on innovativeness and business performance relationship. International Journal of Innovation Management, 20(03), 1650037.
Widarjono, A. (2007). Ekonometrika: Teori dan Aplikasi untuk Ekonomi dan Bisnis, edisi kedua. Yogyakarta: Ekonisia FE Universitas Islam Indonesia.
Al-mulali, U., & Saboori, B. (2015). Investigating the environmental Kuznets curve hypothesis in Vietnam. Energy Policy, 76. https://doi.org/10.1016/j.enpol.2014.11.019
Bakar, O. (2007). Environmental wisdom for planet earth: The Islamic heritage.
Bekhet, H., Matar, A., & Yasmin, T. (2017). CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: Dynamic simultaneous equation models. Renewable and Sustainable Energy Reviews, 70, 117–132. https://doi.org/10.1016/j.rser.2016.11.089
Bergman, Å. (2019). EDC-2020: Summary for decision-makers. Örebro University.
Boutabba, M. A. (2014). The impact of financial development, income, energy and trade on carbon emissions: Evidence from the Indian economy. Economic Modelling, 40, 33–41. https://doi.org/10.1016/j.econmod.2014.03.005
Clarke, G., Xu, L., & Zou, H. (2003). Finance and Income Inequality: Test of Alternative Theories. Annals of Economics and Finance, 14. https://doi.org/10.2139/ssrn.364160
Danish, M., Ahmad, T., Majeed, S., Ahmad, M., Ziyang, L., Pin, Z., & Iqubal, S. M. S. (2018). Use of banana trunk waste as activated carbon in scavenging methylene blue dye: kinetic, thermodynamic, and isotherm studies. Bioresource Technology Reports, 3, 127–137.
Dickey, D., & A Fuller, W. (1981). The Likelihood Ratio Statistics For Autoregressive Time Series With a Unit Root. In Econometrica (Vol. 49). https://doi.org/10.2307/1912517
Frankel, J., & Romer, D. (2017). Does Trade Cause Growth? (pp. 255–276). https://doi.org/10.4324/9781315254166-11
Furuoka, F. (2015). Financial development and energy consumption: Evidence from a heterogeneous panel of Asian countries. Renewable and Sustainable Energy Reviews, 52, 430–444.
Grossman, G. M., & Krueger, A. B. (1995). Economic Growth and the Environment*. The Quarterly Journal of Economics, 110(2), 353–377. https://doi.org/10.2307/2118443
Gujarati, D. N. (2012). Dasar-Dasar Ekoenometrika. Salemba Empat.
Halicioglu, F. (2009). An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy, 37, 1156–1164. https://doi.org/10.1016/j.enpol.2008.11.012
Iskandar, A., Possumah, B. T., & Aqbar, K. (2020). Islamic Financial Development, Economic Growth And Co2 Emission In Indonesia. Journal of Islamic Monetary Economics and Finance, 6(2).
Islam, F., Ahmed, A., & Alam, M. M. (2019). Financial Development and Energy Consumption Nexus in Malaysia: A Multivariate Time Series Analysis. https://doi.org/10.31219/osf.io/tdh8k
Jalil, A., & Mahmud, S. F. (2009). Environment Kuznets curve for CO2 emissions: a cointegration analysis for China. Energy Policy, 37(12), 5167–5172.
Kahouli, B. (2017). The Short and Long run Causality Relationship among Economic Growth, Energy Consumption and Financial Development: Evidence from South Mediterranean Countries (SMCs). Energy Economics, 68. https://doi.org/10.1016/j.eneco.2017.09.013
Kamali, M. H. (2012). Environmental Care in Islamic Teaching: A Qur’anic Perspective. ICR Journal, 3(2), 261–283.
Khan, M. T. I., Yaseen, M. R., & Ali, Q. (2017). Dynamic relationship between financial development, energy consumption, trade and greenhouse gas: Comparison of upper middle income countries from Asia, Europe, Africa and America. Journal of Cleaner Production, 161. https://doi.org/10.1016/j.jclepro.2017.05.129
Lau, L.-S., Choong, C.-K., & Kee, Y. (2014). Investigation of the environmental Kuznets curve for carbon emissions in Malaysia: DO foreign direct investment and trade matter? Energy Policy, 68, 490–497. https://doi.org/10.1016/j.enpol.2014.01.002
Lestari, I. D., Effendi, N., & Priyono, A. F. (2020). Financial development, economic growth, and environmental degradation nexus in ASIAN emerging markets. Jurnal Ekonomi Pembangunan, 18(2), 177–189.
Mahmood, N., & Masih, M. (2019). Dynamics between islamic banking performance and CO2 emissions: evidence from the OIC countries. https://doi.org/10.13140/RG.2.2.26131.02083
Mallick, H., Mahalik, M., & Sadorsky, P. (2016). The role of globalization on the recent evolution of energy demand in India: Implications for sustainable development. Energy Economics, 55, 52–68. https://doi.org/10.1016/j.eneco.2016.01.013
Mu’alim, M., Akhmad, S., Arendra, A., Hidayat, K., & Prasnowo, M. A. (2019). Feasibility Study of Solar and Wind Energy in Remote Islands (Gili Labak Madura).
Nasrijal, N. M. H., & Joni, E. K. E. (2015). The Perils of Drug Trafficking: Endangering the Malay and Muslim Society. In Islamic perspectives relating to business, arts, culture and communication (pp. 199–207). Springer Singapore. https://doi.org/10.1007/978-981-287-429-0_19
Nazir, M. (2011). Metode Penelitian. Ghalia Indonesia.
Omri, A., Saida, D., Rault, C., & Chaibi, A. (2015). Financial development, environmental quality, trade and economic growth: What causes what in MENA countries. Energy Economics.
Osabuohien, E., Efobi, U., & Gitau, C. (2014). Beyond the Environmental Kuznets Curve in Africa: Evidence from Panel Cointegration. Journal of Environmental Policy & Planning, 16. https://doi.org/10.1080/1523908X.2013.867802
Pesaran, H., Smith, R., & Shin, Y. (2001). Bound Testing Approaches to the Analysis of Level Relationship. Journal of Applied Econometrics, 16, 289–326. https://doi.org/10.1002/jae.616.
Qayyum Khan, A., Saleem, N., & Fatima, S. (2017). Financial development, income inequality, and CO2 emissions in Asian countries using STIRPAT model. Environmental Science and Pollution Research, 25. https://doi.org/10.1007/s11356-017-0719-2.
Rehman, I. (2014). Multivariate-based Granger causality between financial deepening and poverty: the case of Pakistan. Quality & Quantity, 48. https://doi.org/10.1007/s11135-013-9952-z.
Riti, J., Song, D., Shu, Y., & Kamah, M. (2017). The contribution of energy use and financial development by source in climate change mitigation process: A global empirical perspective. Journal of Cleaner Production, 148. https://doi.org/10.1016/j.jclepro.2017.02.037.
Saboori, B., Sulaiman, J., & Mohd, S. (2012). Economic growth and CO2 emissions in Malaysia: a cointegration analysis of the environmental Kuznets curve. Energy Policy, 51, 184–191.
Salahuddin, M., Alam, K., & Sohag, K. (2017). The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO 2 emissions in Kuwait. Renewable and Sustainable Energy Reviews. https://doi.org/10.1016/j.rser.2017.06.009
Saud, S., Baloch, M. A., & Lodhi, R. N. (2018). The nexus between energy consumption and financial development: estimating the role of globalization in Next-11 countries. Environmental Science and Pollution Research, 25(19), 18651–18661.
Shahbaz, M., & Islam, F. (2011). Financial development and income inequality in Pakistan: an application of ARDL approach.
Shahbaz, M., Mallick, H., Mahalik, M. K., & Loganathan, N. (2015). Does globalization impede environmental quality in India? Ecological Indicators, 52, 379–393.
Tamazian, A., Piñeiro, J., & Vadlamannati, K. (2009). Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries. Energy Policy, 37, 246–253. https://doi.org/10.1016/j.enpol.2008.08.025.
Tamazian, A., & Rao, B. (2010). Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies. Energy Economics, 32, 137–145. https://doi.org/10.1016/j.eneco.2009.04.004.
Tiwari, A., & Nasir, M. (2013). The Effects of Financial Development, Economic Growth, Coal Consumption and Trade Openness on Environment Performance in South Africa. Energy Policy, 61. https://doi.org/10.1016/j.enpol.2013.07.006.
Uddin, G. S., Shahbaz, M., Arouri, M., & Teulon, F. (2014). Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh. Economic Modelling, 36, 405–412.
Vij, S., & Bedi, H. S. (2016). Effect of organisational and environmental factors on innovativeness and business performance relationship. International Journal of Innovation Management, 20(03), 1650037.
Widarjono, A. (2007). Ekonometrika: Teori dan Aplikasi untuk Ekonomi dan Bisnis, edisi kedua. Yogyakarta: Ekonisia FE Universitas Islam Indonesia.
Published
2023-02-28
How to Cite
Azwar. (2023). Perkembangan Perbankan Syariah dan Degradasi Lingkungan di Indonesia: Analisis Hubungan Jangka Panjang dan Jangka Pendek. Al-Mizan : Jurnal Hukum Dan Ekonomi Islam, 7(1), 100-124. Retrieved from https://ejurnal.iiq.ac.id/index.php/almizan/article/view/914
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