International Business and Accounting Research Journal
Vol 7, No 1 (2023): January 2023

Measurement of The Role of Innovation in Increasing Environmental Performance Index: Empirical Study in Developed and Non-Developed Countries

Amin Pujiati (Department of Economics Development, Faculty of Economics, Universitas Negeri Semarang, Indonesia)
Shela Mareta Fera Feronica (Department of Economics Development, Faculty of Economics, Universitas Negeri Semarang, Indonesia)
Abdul Rahim Ridzuan (Faculty of Business and Management, Universiti Teknologi MARA, Malaysia)



Article Info

Publish Date
29 Jan 2023

Abstract

This study aims to analyze the effect of GDP per capita, government effectiveness, occupation index, population density and innovation on the environmental performance index. The approach used in this study is a type of quantitative approach. Data in this study were collected from 171 countries based on their income consisting of 52 developed countries and 119 non-developed countries. The data in this study were obtained from official websites and documents published by related sources including the Yale Center for Environmental Law and Policy, World Ban, United Nations Development Program (UNDP), and the Global Innovation Index. The analysis tool used is quantitative analysis of Structural Equation Modeling (SEM). The results of the study show that Government Effectiveness has a significant and positive relationship to the Environmental Performance Index. Per capita GDP has a significant effect and has a positive relationship to the Environmental Performance Index. The Education Index has no significant effect and has a positive relationship to the Environmental Performance Index. Population Density has a significant effect and has a negative relationship to the Environmental Performance Index. The innovation variable can mediate the effect of government effectiveness on the environmental performance index. The results of this study provide policy implications through innovation, developed and non-developed countries based on income, can optimize environmental development goals without trade off between economic and environmental factors.

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Journal Info

Abbrev

ibarj

Publisher

Subject

Economics, Econometrics & Finance

Description

International Business and Accounting Research Journal published by Sekolah Tinggi Ekonomi dan Bisnis Islam Lampung. The journal seeks to consolidate its position as the premier vehicle for the diversification of academic finance. The journal publishes high quality, insightful, well-written papers ...