MODULATION OF CARBON EMISSIONS AND CLEAN ENERGY SOURCES: A NONPARAMETRIC GRANGER CAUSALITY-BASED EVIDENCE FROM ASEAN ECONOMIES

Abstract

This study uses a dataset from 1990 to 2020 to investigate the impact of renewable energy sources in preventing further environmental degradation in the Association of Southeast Asian Nations (ASEAN) economies. This research aims to investigate using renewable energy sources to lower CO2 emissions in the area. In this investigation, a unique method known as nonparametric Granger causality was employed by using the quantiles approach. The findings showed a strong causal influence of green energy on the returns of CO2 emission at high quantiles of conditional distribution in six ASEAN countries. In addition, the results demonstrated a substantial causal connection between the use of green energy and the erratic levels of CO2 emission across the board, except in Indonesia. Because of this, this study suggested that the administration and officials introduce private and public investment toward green energy to lessen the environmental collapse occurring in ASEAN countries.