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

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.