Institutional Economics and Islamic Economic Law in Strengthening Sustainable Agriculture and Renewable Energy: A Quantitative Assessment

¹ Faculty of Economics and Business, Universitas Pendidikan Nasional, Indonesia
² Faculty of Economics and Business, Universitas Islam Indonesia, Indonesia
³ Sharia Banking Department, Universitas Ahmad Dahlan, Indonesia
⁴ Department of Business Administration, Asia University, Taiwan
⁵ Department of Business Administration, Asia University, Taiwan
⁶ Department of Finance, Fintech and Blockchain Research Center, and Big Data Research Center, Asia University, Taiwan
⁷ Department of Medical Research, China Medical University Hospital, Taiwan
⁸ Department of Economics and Finance, The Hang Seng University of Hong Kong, Hong Kong

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

This study employs a quantitative research method to examine the synergistic roles of institutional economics and Islamic economic law in advancing sustainable agriculture, renewable energy adoption, and food security goals within the Indonesian context of the Sustainable Development Goals (SDGs). Utilizing regional agricultural datasets, the research employs econometric methods to assess how robust institutional quality (governance, regulation) and the application of Shariah-compliant financing mechanisms (e.g., Green Sukuk, profit-sharing models) influence key development outcomes. The findings of the study demonstrate that the robust nature of institutional frameworks, in conjunction with the ethical principles and the risk-sharing characteristics inherent in Islamic finance, substantially enhances agricultural efficiency, expedites the adoption of renewable energy, and contributes to the enhancement of farmer income stability and improved environmental outcomes. Consequently, these outcomes serve to reinforce the overall national sustainability objectives.