Vol. 2 No. 5 (2026): Oktober
Articles

GREEN POLICY INNOVATION BASED ON REGIONAL AUTONOMY FOR SUSTAINABLE LOCAL ENVIRONMENTAL GOVERNANCE AND DEVELOPMENT

PDF
  • Cynthia Febri Sri Indarti,
  • Herson Simbolon,
  • Muhammad Baharudin Zubahrum Tjenreng,
  • Syahrir
Cynthia Febri Sri Indarti
Institut Pemerintahan Dalam Negeri
Herson Simbolon
Institut Pemerintahan Dalam Negeri
Muhammad Baharudin Zubahrum Tjenreng
Institut Pemerintahan Dalam Negeri
Syahrir
Institut Pemerintahan Dalam Negeri

Published 2026-10-28

Keywords

  • Regional Autonomy,
  • Green Policy Innovation,
  • Fiscal Decentralization,
  • Environmental Governance,
  • Local Government

Abstract

This study examines how regional autonomy and decentralization shape green policy innovation and local environmental governance. It aims to identify major policy themes and the institutional, fiscal, and coordination conditions associated with implementation. A systematic literature review was conducted using Scopus as the principal database, while Watase UAKE supported keyword identification, screening, and PRISMA 2020 reporting. Eight keyword combinations were used to identify literature published between 2020 and 2026. The initial search produced 146 raw records. After duplicate removal and automated filtering, 86 records entered title-and-abstract screening; 14 were excluded and 72 reports were sought for retrieval. The PRISMA output subsequently recorded 49 reports assessed for eligibility and one additional report identified through another method. The thematic synthesis highlights fiscal and regulatory instruments, administrative capacity, policy learning and diffusion, multilevel coordination, and environmental outcomes. Exploratory VOSviewer maps show textual connections among pollution, decentralization, policy innovation, policy adoption, and administrative capacity. The review indicates that regional autonomy alone does not ensure effective green policy. Outcomes depend on the alignment of fiscal resources, institutional capacity, policy incentives, and intergovernmental coordination. Further comparative research is needed to clarify how these conditions shape environmental outcomes across different governance settings.

PDF

References

  1. Ahmed, N., Hamid, Z., Rehman, K. U., Senkus, P., Khan, N. A., Wysokińska-Senkus, A., & Hadryjańska, B. (2023). Environmental regulation, fiscal decentralization, and agricultural carbon intensity: A challenge to ecological sustainability policies in the United States. Sustainability, 15(6), 5145. https://doi.org/10.3390/su15065145
  2. Carrad, A., Aguirre-Bielschowsky, I., Reeve, B., Rose, N., & Charlton, K. (2022). Australian local government policies on creating a healthy, sustainable, and equitable food system: Analysis in New South Wales and Victoria. Australian and New Zealand Journal of Public Health, 46(3), 332–339. https://doi.org/10.1111/1753-6405.13239
  3. Chen, J., & Long, X. (2025). Fiscal decentralization and local environmental governance when performance evaluation matters. Applied Economics, 57(54), 9215–9229. https://doi.org/10.1080/00036846.2024.2411464
  4. Choi, Y., Lee, H., Jeong, H., & Debbarma, J. (2023). Urbanization paradox of environmental policies in Korean local governments. Land, 12(2), 436. https://doi.org/10.3390/land12020436
  5. Damayra, F., & Khatib, T. (2022). Assessment of innovation policy standards’ impact on local development of renewable energy in Palestinian local government units. Renewable Energy, 187, 177–192. https://doi.org/10.1016/j.renene.2022.01.065
  6. de Mello, L., & Jalles, J. T. (2026). Local government and environmental policy: empirical evidence on the link between spending and regulation. Applied Economics, 58(5), 988–1004. https://doi.org/10.1080/00036846.2025.2461813
  7. Dimand, A.-M. (2024). Understanding the impact of collaborative governance on sustainability: Evidence from buying green in local governments in Florida, USA. International Journal of Public Administration. https://doi.org/10.1080/01900692.2024.2363268
  8. Dyson, J., & Harvey-Scholes, C. (2022). How have climate emergency declarations helped local government action to decarbonise? In Addressing the Climate Crisis (pp. 51–61). Palgrave Macmillan. https://doi.org/10.1007/978-3-030-79739-3_5
  9. Enguer, J., & Schaub, S. (2025). Local preferences for the adoption and modification of climate policy instruments under a radical left government: Unveiling the impact and legacy of Barcelona in Common. Local Government Studies, 51(6), 1113–1140. https://doi.org/10.1080/03003930.2024.2400284
  10. Gu, & Liu. (2025). Local government competition, fiscal decentralization, and environmental governance efficiency. Finance Research Letters, 86, 108537. https://doi.org/10.1016/j.frl.2025.108537
  11. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). SAGE Publications.
  12. He, B., Li, S., Wang, N., & Zhang, Z. (2024). Central policy attitudes and innovation diffusion of local government: The case of China’s river chief system. Environmental Science and Pollution Research, 31(46), 57099–57113. https://doi.org/10.1007/s11356-024-32033-6
  13. He, J., Xie, X., Luo, F., Zhong, Y., & Wang, T. (2023). The effectiveness of local governments’ policies in response to climate change: An evaluation of structure planning in Arden, Melbourne. International Journal of Environmental Research and Public Health, 20(3), 2469. https://doi.org/10.3390/ijerph20032469
  14. Huang, X., Zhan, W., Qi, T., Guo, Y., Bai, R., & Hong, T. (2025). Research on regional collaborative governance between central and local governments under the background of green innovation. Systems, 13(3), 153. https://doi.org/10.3390/systems13030153
  15. Indarti, C. F. S., Noorani, A., Syarafidun, A., & Marthalina. (2023). Administrasi Kerja Sama Daerah. Cendekia Press. https://www.cendekiapress.com/2023/11/kerjasamadaerah.html
  16. Jiang, Y., & Li, X. (2026). Green finance policies, local government fiscal pressure, and clean energy utilization efficiency. Finance Research Letters, 89, 109286. https://doi.org/10.1016/j.frl.2025.109286
  17. Leffel, B., Lyon, T. P., & Newell, J. P. (2024). Filling the climate governance gap: Do corporate decarbonization initiatives matter as much as state and local government policy? Energy Research & Social Science, 109, 103376. https://doi.org/10.1016/j.erss.2023.103376
  18. Li, H., Du, Y., & Kong, S. (2025). Green finance, local government competition, and industrial green transformation: Evidence from China. Sustainability, 17(24), 11304. https://doi.org/10.3390/su172411304
  19. Liu, H., Yao, P., Wang, X., Huang, J., & Yu, L. (2021). Research on the peer behavior of local government green governance based on SECI expansion model. Land, 10(5), 472. https://doi.org/10.3390/land10050472
  20. Pūķis, M., Bičevskis, J., Gendelis, S., Karnītis, E., Karnītis, Ģ., Eihmanis, A., & Sarma, U. (2023). Role of local governments in Green Deal multilevel governance: The energy context. Energies, 16(12), 4759. https://doi.org/10.3390/en16124759
  21. Qi, Y., Zou, X., & Xu, M. (2022). Impact of Chinese fiscal decentralization on industrial green transformation: From the perspective of environmental fiscal policy. Frontiers in Environmental Science, 10, 1006274. https://doi.org/10.3389/fenvs.2022.1006274
  22. Sun, Y., Liu, M., & Lv, Y. (2024). Government environmental governance, fiscal decentralization, and carbon intensity of the construction industry. Scientific Reports, 14, 29001. https://doi.org/10.1038/s41598-024-80599-5
  23. Tunio, F. H., Feng, Z. R., Fraz, T. R., Shahbaz, M., Khan, N. R., & Khamdamov, S.-J. (2025). Environmental pollution and green intergovernmental fiscal relations: Fiscal decentralization for sustainable governance. Journal of Environmental Management, 394, 127313. https://doi.org/10.1016/j.jenvman.2025.127313
  24. Tunio, F. H., Nabi, A. A., Dawood, M., & Shaikh, S. ud D. (2024). Fiscal policy for economic growth and environmental quality: Insights from Pakistan’s fiscal decentralization. Discover Sustainability, 5, 211. https://doi.org/10.1007/s43621-024-00373-5
  25. Wang, X., Elahi, E., Khalid, Z., & Abro, M. I. (2023). Environmental governance goals of local governments and technological innovation of enterprises under green performance assessment. International Journal of Environmental Research and Public Health, 20(3), 1996. https://doi.org/10.3390/ijerph20031996
  26. Wang, Y., & Zhang, W. (2024). Green credit policy, market concentration and green innovation: Empirical evidence from local governments’ regulatory practice in China. Journal of Cleaner Production, 434, 140228. https://doi.org/10.1016/j.jclepro.2023.140228
  27. Xu, M., Wang, H., & Luan, S. (2026). Selective decentralization under the trend of centralization: Reforms in China’s governmental power of environmental governance from 1973 to 2023. Journal of Public Policy, 46(1), 75–101. https://doi.org/10.1017/S0143814X25100846
  28. Yan, M., Li, W., Li, J., & Li, J. (2025). Assessing local government responses to green credit policies and their impact on urban carbon emissions in China. Energy Strategy Reviews, 62, 101936. https://doi.org/10.1016/j.esr.2025.101936
  29. Yulandari, E. D., Murayama, T., & Nishikizawa, S. (2023). Climate change adaptation through policy integration by local governments in Indonesia. Mitigation and Adaptation Strategies for Global Change, 28(1), 1–18. https://doi.org/10.1007/s11027-022-10039-0
  30. Zang, J., & Liu, L. (2020). Fiscal decentralization, government environmental preference, and regional environmental governance efficiency: Evidence from China. The Annals of Regional Science, 65(2), 439–457. https://doi.org/10.1007/s00168-020-00989-1
  31. Zhang, & Wang. (2020). Environmental regulation policies, local government enforcement and pollution-intensive industry transfer in China. Computers & Industrial Engineering, 148, 106748. https://doi.org/10.1016/j.cie.2020.106748
  32. Zhou, C., & Zhang, X. (2020). Measuring the efficiency of fiscal policies for environmental pollution control and the spatial effect of fiscal decentralization in China. International Journal of Environmental Research and Public Health, 17(23), 8974. https://doi.org/10.3390/ijerph17238974
  33. Zwick, A., Young, M., Spicer, Z., & Freeland, K. (2024). Local government environmental policy innovation: Emerging regulation of GHG emissions in the transportation-for-hire industry. Sustainability, 16(22), 10135. https://doi.org/10.3390/su162210135