Renewable energy consumption has emerged as an energy source that can reduce concerns about greenhouse gas emissions. However, renewable energy generation is less attractive due to its expensive and capital-intensive nature. Countries with lower development levels or individuals with limited capabilities experience increasingly severe negative impacts from environmental changes, leading to health and economic crises. One region that needs to overcome the Middle Income Trap is ASEAN. This study uses the period from 1995 to 2020 with renewable energy as the dependent variable. Gross Domestic Product (GDP), Foreign Direct Investment (FDI), population, and CO2 Emission serve as independent variables, using VECM as the analysis technique. The results show that GDP, FDI, and CO2 Emissions have a significant positive ef, whereas population has a significant negative effect on renewable energy. In the short term, FDI and population significantly positively affect renewable energy. To promote renewable energy development, governments must focus on increasing GDP and attracting FDI, especially in the clean energy sector. Thus, renewable energy generation continues to progress.

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Powering Southeast Asia’s Renewable Energy: A Panel VECM Exploration of Determinants

  • Moh. Amru,
  • Fajar Pitarsi Dharma,
  • Nurul Anwar,
  • Dedy Harianto,
  • Hamdan S. Bintang,
  • Hendri Pujianto,
  • Mohadi

摘要

Renewable energy consumption has emerged as an energy source that can reduce concerns about greenhouse gas emissions. However, renewable energy generation is less attractive due to its expensive and capital-intensive nature. Countries with lower development levels or individuals with limited capabilities experience increasingly severe negative impacts from environmental changes, leading to health and economic crises. One region that needs to overcome the Middle Income Trap is ASEAN. This study uses the period from 1995 to 2020 with renewable energy as the dependent variable. Gross Domestic Product (GDP), Foreign Direct Investment (FDI), population, and CO2 Emission serve as independent variables, using VECM as the analysis technique. The results show that GDP, FDI, and CO2 Emissions have a significant positive ef, whereas population has a significant negative effect on renewable energy. In the short term, FDI and population significantly positively affect renewable energy. To promote renewable energy development, governments must focus on increasing GDP and attracting FDI, especially in the clean energy sector. Thus, renewable energy generation continues to progress.