Should developed regions bear more responsibility in addressing environmental issues? Insights from Indonesia's unequal regional development

Abstract

Addressing environmental issues is inherently complex due to the fundamental question of who should bear the responsibility. While it is more prominent at the global level, this issue is also pertinent at a subnational level, such as in Indonesia, where significant disparities exist in economic development and environmental degradation across the archipelago. Our research intends to fill the gap by measuring environmental footprints in the country by accounting for the interregional trade between provinces. We integrate an Interregional Input-Output (IRIO) model developed by Indonesia's Central Bureau of Statistics with the national sectoral energy input dataset, the blue water consumption vector from EXIOBASE, and the national land use map, creating an Environmentally-Extended Interregional Input-Output (EE IRIO). The study revealed that Indonesia's carbon and water footprints are primarily consumed and produced on Java Island; meanwhile, the agricultural footprint is produced on Sumatra and Kalimantan Island but consumed significantly on Java Island. This result corresponds with Java Island's domination in terms of the economy and population. The study revealed that developed regions produce footprints directly and induce footprint generation in other areas through import demand, emphasizing the relevance of ‘common but differentiated responsibility’ in local development.