Purpose: To examine environmental quality performance among Indonesian local governments during 2021–2024 and assess differences across environmental dimensions, fiscal capacity groups, and government types. Methodology: The study uses secondary data from the Environmental Quality Index (IKLH) and its components (IKA, IKU, IKL, and IKAL). Performance trends were analyzed and mean-difference tests were conducted across local government groups. Findings: Environmental quality improved gradually over the study period, although progress varied across dimensions. Air quality showed the highest performance, while water quality remained the weakest despite experiencing the largest improvement. Higher-fiscal-capacity governments achieved significantly better environmental outcomes overall, except in air quality, where lower-fiscal-capacity governments performed better. Regencies generally outperformed cities, particularly in air quality. Implication: The findings highlight the importance of fiscal capacity in environmental management and the need for context-specific policies to support sustainable development across different local government settings. Originality: This study provides recent empirical evidence on multidimensional environmental quality disparities among Indonesian local governments by simultaneously comparing performance across environmental dimensions, fiscal capacity levels, and government types during 2021–2024.
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