Dwi Prasetyani, Selfia Bintariningtyas, Ratna Malisa Indriawati
This study examines the complex relationship between the Human Development Index, the level of fiscal decentralization, and ecological fiscal transfers, as well as agricultural variables, that affect environmental quality. Empirical results from the Random Effect Model (REM) estimation reveal that HDI and fiscal decentralization significantly affect agricultural production, particularly rice production, which serves as a proxy for agricultural dynamics. The Human Development Index exhibits a strong positive influence, while fiscal decentralization also makes a positive and significant contribution. The study recommends strengthening fiscal decentralization policies to enable local governments to tailor agricultural programs to regional needs. Investments in human development, particularly education and health, should be prioritized as they have a direct impact on agricultural performance. Furthermore, sustainable management of agricultural practices is essential to mitigate ecological risks associated with intensive farming. The study emphasizes the importance of integrated policy frameworks that align human development, fiscal mechanisms, and sustainable agricultural strategies to support environmental sustainability and development goals in Indonesia. © Published under licence by IOP Publishing Ltd.
Faculty of Economic and Business, Universitas Sebelas Maret, Indonesia; Research group of Institutions and Human Resources, Universitas Sebelas Maret, Indonesia; Doctoral Program of Economic and Business Faculty, Universitas Brawijaya, Indonesia
