Journal Article2025
Fiscal Instruments for Climate Action: Evidence from Indonesian Sub-national Budgets
We assemble a panel of climate-tagged expenditure across 34 Indonesian provinces from 2018 to 2024 and test whether tagging changes allocation. We find that tagging alone has no detectable effect on the level of climate expenditure, but that provinces which pair tagging with outcome indicators and public reporting increase climate-relevant capital spending by 11 to 14 percent relative to the control group. The results suggest that fiscal transparency infrastructure, not classification per se, is what shifts budgets.
Rina Hapsari, Reza Fadhilah & 1 others
