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All Journal SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
Pukuh, Nugraha
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Economics, Econometrics & Finance

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Digital Transformation and the Environment: An Analysis of the Impact of Digital Transactions on Carbon Emissions in Indonesia Pukuh, Nugraha; Widyasthika, Hayu Fadlun; Hakim, Shinta Mahaputri
SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS SIJDEB, Vol. 9, No. 1, March 2025
Publisher : Faculty of Economics, Universitas Sriwijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29259/sijdeb.v9i1.1-20

Abstract

The rapid rise in carbon emissions due to economic expansion has accelerated global warming and climate change. Amid these challenges, digital transformation in retail and financial services has emerged as a potential solution to mitigate environmental degradation. This study analyzes the impact of digital transactions—online shopping and financial technology—on carbon monoxide emissions in Indonesia using panel data from 34provinces between 2019 and 2022. Employing a fixed effects panel regression model, the analysis reveals that higher adoption of digital transactions significantly reduces carbon monoxide levels. The number of vehicles is positively associated with emissions, while tertiary education levels contribute to emission reduction. These findings suggest that promoting digital finance and e-commerce can support the transition toward a low-carbon economy. This study offers empirical evidence for policymakers to integrate digital transformation into environmental strategies  
Co-Authors Hakim, Shinta Mahaputri Widyasthika, Hayu Fadlun