The Effect of Renewable and Nonrenewable Energy Use on Sustainable Development in South East Asia
DOI:
https://doi.org/10.47067/reads.v8i2.441Keywords:
Renewable Energy, Fossil Fuel Energy, Co2 Emission, Fixed Effect, Radom Effect, GMM, Environmental SustainabilityAbstract
This research focuses on observing the effects of renewable and fossil fuel energy usage on the environment and economic growth in Southeast Asian countries. The study utilized the annual data of southeast Asian countries from 1990 to 2020 This study used gross fixed capital formation, foreign direct investment, renewable energy, population, non-renewable energy, and Labor force on fundaments of economic growth concerning sustainability. Fixed Effect, Radom Effect, and a two-step GMM methodology were used to estimate the link among the variables. The consequences of the study demonstrate that renewable energy intake has a destructive and statistically significant influence the dependent variable: CO2 emission whereas fossil energy has a noteworthy and positive influence on CO2 emissions. Foreign direct investment and population have a significantly positive influence on CO2 emission. While non-renewable and Renewable-energy intake has a momentous optimistic bearing on the economic progress of nominated ASEAN states along through labor force and capital formation. The universal energy needs depend on finite nonrenewable energy sources in the form of natural gas, oil, and coal which are exhaustible and hazardous to the environment. So, the need for hours is that the governments should escalate the use of renewable energy in their energy mix to increase the economy’s growth and environmental sustainability.
References
Adedoyin, F. F., Bekun, F. V., & Alola, A. A. (2020). Growth impact of transition from non-renewable to renewable energy in the EU: the role of research and development expenditure. Renewable Energy, 159, 1139-1145.
Ali, S., Anwar, S., & Nasreen, S. (2017). Renewable and Non-Renewable Energy and its Impact on Environmental Quality in South Asian Countries. Forman Journal of Economic Studies, 13, 177-194.
Atems, B., & Hotaling, C. (2018). The effect of renewable and nonrenewable electricity generation on economic growth. Energy Policy, 112, 111-118.
Chen, C., Pinar, M., & Stengos, T. (2020). Renewable energy consumption and economic growth nexus: Evidence from a threshold model. Energy Policy, 139, 111295.
Dogan, E., & Seker, F. (2016). Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy. Renewable Energy, 94, 429-439.
Energy Consumption and Economic Growth: Empirical Evidence from Pakistan”, Pakistan Journal of Social Sciences (PJSS), Vol. 32, No. 02, 2012
Fadilah, S., Lestari, R., Sahdan, M. H., & Khalid, A. Z. A. (2020). The Impact of Renewable Energy Consumption on the Economic Growth of the ASEAN Countries. International Journal of Energy Economics and Policy, 10(6), 602.
Inglesi-Lotz, R. (2016). The impact of renewable energy consumption to economic growth: A panel data application. Energy economics, 53, 58-63.
Ito, K. (2017). CO2 emissions, renewable and non-renewable energy consumption, and economic growth: Evidence from panel data for developing countries. International Economics, 151, 1-6.
Kahia, M., Aïssa, M. S. B., & Charfeddine, L. (2016). Impact of renewable and non-renewable energy consumption on economic growth: New evidence from the MENA Net Oil Exporting Countries (NOECs). Energy, 116, 102-115.
Koengkan, M., & Fuinhas, J. A. (2020). Exploring the effect of the renewable energy transition on CO2 emissions of Latin American & Caribbean countries. International Journal of Sustainable Energy, 39(6), 515-538.
Le, T. H., Chang, Y., & Park, D. (2020). Renewable and nonrenewable energy consumption, economic growth, and emissions: International evidence. The Energy Journal, 41(2).
Mohiuddin, O., Asumadu-Sarkodie, S., & Obaidullah, M. (2016). The relationship between carbon dioxide emissions, energy consumption, and GDP: A recent evidence from Pakistan. Cogent Engineering, 3(1), 1210491.
Narayan, S., & Doytch, N. (2017). An investigation of renewable and non-renewable energy consumption and economic growth nexus using industrial and residential energy consumption. Energy Economics, 68, 160-176.
Prettner, K. (2014). The non-monotonous impact of population growth on economic prosperity. Economics Letters, 124(1), 93-95.
Safdar, N. (2020). How do Energy Consumption, Environmental Degradation and Macroeconomic Performance Cause in Developing Countries? An Analysis. Journal of Business and Social Review in Emerging Economies, 6(3), 1189-1197.
Safdar, N., Chaudhry, I. S., & Chaudhry, M. O. (2019). Energy Consumption, Environmental Degradation and Economic Growth in Developing Countries. Pakistan Journal of Social Sciences (PJSS), 39(2).
Safdar, N., Ghaffar, H., Farooq, F., & Liaquat, M. (2020). Trade Liberalization, Economic Growth, and Environmental Quality Nexus: An Empirical Evidence from Pakistan. Journal of Accounting and Finance in Emerging Economies, 6(4), 1077-1087.
Tsaurai, K., & Ngcobo, L. (2020). Renewable energy consumption, education and economic growth in Brazil, Russia, India, China, South Africa. International Journal of Energy Economics and Policy, 10(2), 26.
Venkatraja, B. (2020). Does renewable energy affect economic growth? Evidence from panel data estimation of BRIC countries. International Journal of Sustainable Development and World Ecology, 27(2), 107-113.
Wang, Q., & Wang, L. (2020). Renewable energy consumption and economic growth in OECD countries: A nonlinear panel data analysis. Energy, 207, 118200.
Zafar, M. W., Shahbaz, M., Hou, F., & Sinha, A. (2019). From nonrenewable to renewable energy and its impact on economic growth: the role of research & development expenditures in Asia-Pacific Economic Cooperation countries. Journal of cleaner production, 212, 1166-1178.
Zaidi, S. A. H., Hou, F., & Mirza, F. M. (2018). The role of renewable and non-renewable energy consumption in CO 2 emissions: a disaggregate analysis of Pakistan. Environmental Science and Pollution Research, 25(31), 31616-31629.
