Going Green in ASEAN: Assessing the Role of Eco‐Innovation, Green Energy, Industrialization, and Environmental Taxes in Achieving Carbon Neutrality

Abstract

ABSTRACTCarbon emissions are a primary driver of environmental degradation and pose noteworthy risks to global efforts in combating climate change, particularly in ASEAN economies. While CO2 emissions are central to understanding environmental impacts, they represent just one aspect of the broader sustainability framework. This study examines the roles of eco‐innovation, green energy, globalization, economic growth, industrialization, and environmental taxes in reducing CO2 emissions within ASEAN economies from 1990 to 2022. Utilizing a cross‐sectional ARDL model, we explore the correlations among these factors, with special attention to the environmental dimension of sustainable development. Our findings highlight the negative relationships between eco‐innovation, green energy, industrialization, environmental taxation, and CO2 emissions, which contribute significantly to environmental sustainability both immediately and later on. Additionally, the study reveals reciprocal causal links between these elements and the emissions of CO2, offering critical policy insights for advancing environmental goals within the structure of the sustainable development goals (SDGs), especially those about climate action (SDG 13), affordable and clean energy (SDG 7), and sustainable industrialization (SDG 9). These insights provide a pathway for policy interventions that target CO2 mitigation while recognizing the diverse aspects of sustainable development.