The Influence of Mining Impacts and the Green Economy on Community Welfare: A Case Study of Communities Surrounding Nickel Mining Areas in Southeast Sulawesi, Indonesia

ABSTRACT : This study aims to analyze the multidimensional impacts of mining activities on community welfare by considering the role of the green economy as a sustainable transformation approach. A mixed methods design was employed, involving data collection through Likert-scale questionnaires, and in-depth interviews, participatory observations, and secondary data analysis. The respondents consisted of local communities, mine workers, and related stakeholders living and operating within the vicinity of mining activities. Quantitative analysis was conducted using Structural Equation Modeling (SEM) to examine the causal influence of environmental, health, socio-economic, and socio-cultural impacts on community welfare mediated by the green economy. The findings indicate that mining activities contribute positively to improving community welfare, particularly through increased employment opportunities, income enhancement, and better access to education and health services. However, environmental degradation and socio-cultural risks remain significant challenges that require proper management. The SEM results confirm that the application of green economy principles significantly strengthens the positive contributions of mining to community welfare. Therefore, sustainable mining management requires stronger regulations, intensive monitoring, environmentally responsible practices, and inclusive community empowerment programs.

KEYWORDS: mining, green economy, SEM, sustainability, community welfare