• This study applies advanced econometric techniques including FMOLS, DOLS, CCR, and Wavelet Coherence analysis. • This study findings reveal that pesticide use and nitrogen fertilizer application worsen environmental quality by increasing emissions, particularly CO2 emissions. • Economic growth has the most significant positive impact on environmental degradation, as reflected in increased ecological footprint, greenhouse gas emissions, and CO2 emissions. • Capital has a negative impact, reducing emissions across all models and mitigating environmental degradation, while technological innovation shows mixed results, with some mitigating potential but limited statistical significance in certain models. • This study recommends targeted policy interventions to achieve sustainable environmental outcomes. The accelerating impacts of climate change underscore the urgent need to identify and understand the key drivers of environmental sustainability. In Indonesia, the agricultural sector plays a crucial role, exerting both positive and negative influences on the environment. This study examines the effects of pesticide use, nitrogen fertilizer application, economic growth, capital investment, and technological innovation on environmental quality, as proxied by the ecological footprint, greenhouse gas emissions, and CO 2 emissions in Indonesia from 1990Q1 to 2021Q4. The study employs advanced econometric methodologies, including Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), Canonical Cointegrating Regression (CCR), and Wavelet Coherence analysis. The empirical findings reveal that pesticide use and nitrogen fertilizer application worsen environmental quality by increasing emissions, particularly CO 2 emissions. Economic growth has the most significant positive impact on environmental degradation, as reflected in increased ecological footprint, greenhouse gas emissions, and CO 2 emissions. Conversely, capital has a negative impact, reducing emissions across all models and mitigating environmental degradation, while technological innovation shows mixed results, with some mitigating potential but limited statistical significance in certain models. These findings are consistent with the results obtained from wavelet and partial wavelet coherence analyses. Based on these results, the study recommends targeted policy interventions to achieve sustainable environmental outcomes. Policies should focus on promoting resource-efficient investments and cleaner technologies, reducing reliance on pesticide use and nitrogen-based fertilizers through sustainable agricultural practices, and aligning economic growth strategies with environmental objectives. These measures are essential to balance economic development and environmental protection, ensuring a sustainable future for Indonesia amidst the challenges of climate change.
Idroes et al. (Wed,) studied this question.