2024 | Thao Tran, Hung Bui, Anh The Vo, Duc Hong Vo
This paper examines the dynamic link between energy consumption, economic growth, and carbon emissions in the ASEAN region over the past three decades, with a focus on the role of renewable energy. Using panel vector autoregressive (PVAR) and Granger non-causality tests, the study finds that carbon emissions are positively associated with energy consumption, while renewable energy usage reduces CO₂ emissions, improving environmental quality. Economic growth is linked to increased energy consumption and carbon emissions. The effects of energy consumption on economic growth are more significant than those of renewable energy. A bidirectional Granger causality is confirmed among energy consumption, economic growth, CO₂ emissions, and renewable energy usage. The findings highlight the importance of renewable energy in achieving dual objectives of economic growth and reduced CO₂ emissions in the ASEAN region. The study provides policy implications for ASEAN countries to encourage renewable energy usage and develop strategies to combat climate change.This paper examines the dynamic link between energy consumption, economic growth, and carbon emissions in the ASEAN region over the past three decades, with a focus on the role of renewable energy. Using panel vector autoregressive (PVAR) and Granger non-causality tests, the study finds that carbon emissions are positively associated with energy consumption, while renewable energy usage reduces CO₂ emissions, improving environmental quality. Economic growth is linked to increased energy consumption and carbon emissions. The effects of energy consumption on economic growth are more significant than those of renewable energy. A bidirectional Granger causality is confirmed among energy consumption, economic growth, CO₂ emissions, and renewable energy usage. The findings highlight the importance of renewable energy in achieving dual objectives of economic growth and reduced CO₂ emissions in the ASEAN region. The study provides policy implications for ASEAN countries to encourage renewable energy usage and develop strategies to combat climate change.