Moderating Role of Governance in the Nexus of Economic Growth and Renewable Energy Consumption: The Case of Southeast Asian Countries
摘要
Renewable energy consumption has become increasingly prevalent worldwide, spanning across both developed and developing nations. This paper delves into the intricate dynamics among economic growth, governance, and renewable energy consumption within developing countries. Specifically, it investigates the moderating role of governance in shaping the relationship between economic growth and renewable energy consumption. Drawing upon data from 2000 to 2020 from nine selected Southeast Asian countries (ASEAN), this study employs fully modified ordinary least squares (FMOLS) estimation techniques. Furthermore, it scrutinizes the marginal effects of economic growth on renewable energy consumption across diverse levels of governance. Empirical findings suggest that economic growth generally augments renewable energy consumption, with the impact being either dampened or amplified by various indicators of good governance. These results underscore the nuanced influence of good governance in the nexus between renewable energy consumption and economic growth. Consequently, policymakers are encouraged to consider the multifaceted roles of good governance to facilitate the expansion of renewable energy consumption.