THE IMPACT OF RENEWABLE ENERGY CONSUMPTION ON THE ECONOMIC GROWTH OF THE ASEAN COUNTRIES

Sri Fadilah,Ahmad Zamil Abdul Khalid,Rini Lestari,Mohd Hadafi Sahdan

doi:10.32479/ijeep.10589

Abstract

The foremost purpose of the study is to explore the impact of renewable energy consumption (REC) on the economic growth of ASEAN countries. Data were extracted from the World Bank and ASEAN Energy Information Administration (EIA). The “Generalized Method of Moments (GMM)” approach has been used by using the STATA software for the analysis. The results unprotected that the REC and non-renewable energy consumption (NREC), growth in labor force and capital stock has positive nexus with the economy growth of the ASEAN countries. These findings provide the guidelines to the regulators that they should make the policies for the REC and NREC that increase the economy growth of the world.Keywords: Economy Growth, Renewable Energy, Non-renewable Energy, Growth of Capital, Growth of Labor Force, ASEAN countriesJEL Classifications: Q1, N7DOI: https://doi.org/10.32479/ijeep.10589

Highlights

The decade of 2014-2024 is designated as the sustainable energy decade by the United Nations all over the globe
The foremost purpose of the study is to explore the impact of renewable energy consumption (REC) on the economy growth of ASEAN countries
This study examined the nexus among the consumption of non-renewable and renewable energy, capital and labor force growth with economy growth and made the following equation: EGit = α0 + β1RECit + β2 NRECit + β3GCSit + β4LFit + eit (1)

Summary

Introduction

The decade of 2014-2024 is designated as the sustainable energy decade by the United Nations all over the globe. Approximately 19.1% of world REC was due to the renewable energy (RE) sources in 2013 (Liu et al, 2017). The heating capacity growth is currently very low, but the creation of biofuels that is created from transportation is at peak from 2011 to 2012 (Hussain et al, 2017). The growth in renewable energy in recent years is only due to the incentive given by the government, like subsidies, and other incentives. These incentives increase the competitiveness of the cost of sources regarding RE. The heating capacity growth is currently very low, but the creation of biofuels that is created from transportation is at peak from 2011 to 2012. Along with United States and Europe, the initiatives of renewable energy have invented in almost all of the countries

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