Renewable energy, economic development, energy consumption and its impact on environmental quality: New evidence from South East Asian countries

Abstract

In light of the COP28 summit's emphasis on renewable energy as a key solution for climate change and energy security, this study focuses on Southeast Asian countries, where the potential and impact of renewable energy remain underexplored amidst pressing environmental and global warming challenges. This research aims to fill the gap by examining how renewable energy can mitigate environmental degradation and drive economic growth in this region, contributing to the broader discourse on renewable energy's global relevance and application. Employing the Environmental Kuznets Curve (EKC) framework and the Generalized Method of Moments (GMM) estimation technique, this research analyzes data from 1975 to 2022 to examine the long-term impact of renewable energy adoption in these economies. The findings reveal that renewable energy significantly reduces environmental pollution and contributes positively to environmental sustainability. The findings indicated that coal-based energy consumption has contributed more to environmental degradation than energy obtained from natural gas. These results underscore the synergistic relationship between renewable energy utilization and environmental health, providing a clear pathway for policy development. This study emphasizes the importance of integrating renewable energy into economic policies in order to achieve environmental sustainability and cost-effective degradation reduction in line with Sustainable Development Goals (SDGs).