Primary Sector Performance as a Leveraging Variable for Welfare Enhancement Under Socio-Demographic Pressure and Environmental Degradation: Application of Structural Equation Modelling

Well-being is a state in which individuals or groups of people can adequately meet their basic needs. This study aims to analyse the influence of environmental and social demographic variables on well-being and the performance of key economic sectors in Lampung Province. The approach used is Structural Equation Modelling with the Partial Least Square method. The results of the study indicate that the direct influence of 1) environmental variables accounts for 47.9% (p=0.004) of the performance of the main sectors, 2) the performance of the main sectors accounts for 24.7% (p=0.031) of welfare, and 3) social demographics account for 55.2% (p=0.05) of welfare. Meanwhile, the results of the indirect influence on the model through the main sector showed no significant effect (α=0.05). This study provides a scientific basis for formulating regional development policies oriented towards environmental sustainability and improving the quality of life of the community. It is recommended that local governments optimise resource management and data-based development planning.