The role of renewable energy in the energy–growth–emission nexus in the ASEAN region

The role of renewable energy in the energy–growth–emission nexus in the ASEAN region

2024 | Thao Tran, Hung Bui, Anh The Vo, Duc Hong Vo
This study examines the dynamic relationship among energy consumption, economic growth, and carbon emissions in the ASEAN region, with a focus on renewable energy. The research uses panel vector autoregressive and Granger non-causality tests, along with long-run estimation techniques, to analyze the interactions among these variables over the past three decades. The findings indicate that carbon emissions are closely linked to energy consumption, while renewable energy usage reduces CO₂ emissions and improves environmental quality. Economic growth is associated with increased energy consumption and carbon emissions in the ASEAN countries. The study also reveals that the effects of energy consumption on economic growth are more significant than those of renewable energy. Together, these findings form a vicious cycle in the energy–growth–emission nexus for ASEAN economies. A bidirectional Granger causality is confirmed among energy consumption, economic growth, CO₂ emissions, and renewable energy usage. Renewable energy is identified as a key factor in achieving ASEAN nations' dual objectives of economic growth and reduced CO₂ emissions. The study highlights the importance of renewable energy in the energy mix for sustainable development and environmental quality. The results suggest that renewable energy can support continued economic growth while reducing negative environmental impacts. The findings provide important policy implications for ASEAN countries, emphasizing the need for increased investment in renewable energy and the development of policies that promote sustainable energy use. The study also underscores the importance of coordination among ASEAN countries to implement effective policies focused on renewable energy and climate change mitigation.This study examines the dynamic relationship among energy consumption, economic growth, and carbon emissions in the ASEAN region, with a focus on renewable energy. The research uses panel vector autoregressive and Granger non-causality tests, along with long-run estimation techniques, to analyze the interactions among these variables over the past three decades. The findings indicate that carbon emissions are closely linked to energy consumption, while renewable energy usage reduces CO₂ emissions and improves environmental quality. Economic growth is associated with increased energy consumption and carbon emissions in the ASEAN countries. The study also reveals that the effects of energy consumption on economic growth are more significant than those of renewable energy. Together, these findings form a vicious cycle in the energy–growth–emission nexus for ASEAN economies. A bidirectional Granger causality is confirmed among energy consumption, economic growth, CO₂ emissions, and renewable energy usage. Renewable energy is identified as a key factor in achieving ASEAN nations' dual objectives of economic growth and reduced CO₂ emissions. The study highlights the importance of renewable energy in the energy mix for sustainable development and environmental quality. The results suggest that renewable energy can support continued economic growth while reducing negative environmental impacts. The findings provide important policy implications for ASEAN countries, emphasizing the need for increased investment in renewable energy and the development of policies that promote sustainable energy use. The study also underscores the importance of coordination among ASEAN countries to implement effective policies focused on renewable energy and climate change mitigation.
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