Electoral competition, district party fragmentation and environmental policy outcome: Empirical evidence from Indonesia

Abstract

This paper explores how party fragmentation and electoral competition relate to the outcome of environmental policy. It is assumed that when elections happen the electoral punishment and incentives will be distributed. Specifically, when there are high number of effective number parties (ENP) in the legislature, it brings competition to the incumbent to provide more public goods. Hence, the electoral competition and party fragmentation will bring more provision of public goods. Using these assumptions, the electoral competition theory provides basic pieces of information to predict the effect of electoral competition on environmental policy outcome; a high ENP will provide a better outcome of environmental policy. Taking Indonesia as our case selection, we discovered a positive association between the number of effective parties and energy efficiency, such as LED, and a negative correlation between the usage of wood for domestic fuel. This means that political competition such as electoral competition promotes better outcome for environmental policy.