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 bears responsibility. While more prominent at the global level, this issue is also pertinent on 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 while accounting for the interregional trade between provinces. We utilize the Environmentally-Extended Interregional Input-Output (EE IRIO), which allows us to evaluate the relationship between economic activities, environmental footprints, and corresponding spatial distribution. The study reveals that Indonesia's carbon and water footprints are primarily consumed and produced on Java Island, whereas the agricultural footprint is produced on Sumatra and Kalimantan Islands but consumed significantly on Java Island. This result corresponds with Java Island's dominance 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.