The Role of Pythonic Accounting-Assisted Digital Finance Sentiment in Pro-moting Environmental Sustainability

Abstract

This panel data study aims to examine the relationship between Indonesia’s environmental protection achievement in terms of climate change prevention and its prevailing political economy by explicitly considering the role of pythonic accounting assisted-capital market sentiment from 2001 to 2018. This study uses fixed and random-effect models as econometric techniques. Environmental protection is measured by Indonesia Environmental Carbon Index. The political economy is measured by the wealth distribution index among Indonesians or known as the GINI coefficient. This study concludes with two important findings: (1) The Government of Indonesia’s politically motivated economic policies resulting in wealth distribution inequalities significantly harm the environmental protection effort mostly in carbon emission control and waste management. Economic inequalities resulting from the politically motivated economic policy indirectly legitimize people’s action to exploit nature by any means necessary to survive. Therefore, the fifth state principle of Pancasila mandating social justice for every single Indonesian can be the best explanation for this social jealousy phenomenon. In other words, environmental protection without fair political economy policies is an impossible mission; (2) media sentiment on digital finance shows an insignificant impact only during the first two presidencies 2001-2008 on the relationship between the wealth distribution gap and environmental protection in Indonesia. Meaning that speculations or reactions from the media related to digital finance could not do anything about the existing wealth distribution gap's impact on the environmental protection effort in Indonesia in the early 2000s but it starts to change after 2005 in Indonesia due to capital market maturity after Asia economic crisis 1998-1999.