What drives decarbonization accountability? Evidence from Indonesian local governments

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Authors: Habib Muhammad Shahib, Rahmat Syarif, Muhammad Chaerul, Nadya Daulay
Cited by: 2
References: 59

Abstract

Purpose Addressing the need for decarbonization accountability, this study aims to investigate what drives disclosure by Indonesian provincial governments. We assess whether reporting reflects proactive governance or is a reactive tool for managing legitimacy in a complex context where national climate ambitions meet intense local pressures. Design/methodology/approach A custom disclosure index based on Indonesia's national decarbonization regulation (Perpres No. 98/2021) was applied via manual content analysis to 180 official reports from 30 provinces (2018–2023). A three-model panel data strategy, including two-way fixed-effects and Mundlak/CRE models, was then employed to analyze how socio-environmental, economic and governance factors shape provincial government accountability. Findings The analysis reveals that disclosure is a practice of “reactive legitimacy.” It is strongly and positively driven by a province's economic capacity. The introduction of the national decarbonization regulation and the level of socio-environmental conflict both show a marginally significant positive influence. Conversely, proactive drivers, such as organized stakeholder pressure and a region's ecological capacity for carbon sequestration, were not found to be significant. This pattern indicates a critical “accountability gap” between national policy intent and local implementation. Originality/value This study provides the first multi-level analysis of decarbonization disclosure in the under-researched local government context in the global south. It offers empirical evidence of an “accountability gap” between symbolic, compliance-oriented reporting and the substantive accountability required for effective climate governance, offering valuable insights into both accountability theory and actionable policy recommendations.

Fields of Study & Subjects

Sustainability and Climate Change Governance Corporate Social Responsibility Reporting Energy Environment Economic Growth

Publication details

Journal / source
Journal of Public Budgeting Accounting & Financial Management
Publisher
Emerald
Volume
38
Issue
4
Pages
660–681
Publication date
5 February 2026
Language
EN