An Empirical Analysis of Factors Affecting Renewable Energy Consumption in Association of Southeast Asian Nations-4 Countries

Authors

  • Vikniswari Vija Kumaran Universiti Tunku Abdul Rahman
  • Abdul Rahim Ridzuan Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kampus Alor Gajah, Km 26 Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia http://orcid.org/0000-0002-1510-895X
  • Farman Ullah Khan 3National University of Modern Languages, Islamabad Pakistan
  • Hussin Abdullah Universiti Utara Malaysia
  • Zam Zuriyati Mohamad Universiti Tunku Abdul Rahman

Abstract

This study aimed to explore the determinants of renewable energy consumption in selected ASEAN countries by emphasizing the significant role played by the quality of governance. This paper is classified according to the coverage of three dimensions approach (economic, environment, and governance) for sustainability. This study employed panel data analysis to examine the relationship between GDP, CO2 emissions, FDI, trade openness, urbanization, and quality of governance on renewable energy consumption in selected ASEAN countries from 1990 to 2016. The results revealed that urbanisation has a significant positive impact on renewable energy based on FMOLS and DOLS analyses while the quality of governance has a significant positive impact on renewable energy based on PMG analysis in the long run. However, GDP and trade openness have a significant negative impact on renewal energy. The elasticity analysis in the short run revealed that none of the factors applied in this study affected renewable energy consumption. Hence, several policies are recommended as an excellent approach to meet the energy demand of private investors and future generations.

Keywords: Renewable Energy, ASEAN, Quality of Governance, Panel Estimation

JEL Classifications: F64, Q42, P28

DOI: https://doi.org/10.32479/ijeep.8142

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Author Biography

Abdul Rahim Ridzuan, Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kampus Alor Gajah, Km 26 Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia

Index Publication Coordinator & Head of Scholar and Research Unit, Universiti Teknologi MARA (UiTM)

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Published

2020-01-21

How to Cite

Kumaran, V. V., Ridzuan, A. R., Khan, F. U., Abdullah, H., & Mohamad, Z. Z. (2020). An Empirical Analysis of Factors Affecting Renewable Energy Consumption in Association of Southeast Asian Nations-4 Countries. International Journal of Energy Economics and Policy, 10(2), 48–56. Retrieved from http://econjournals.com/index.php/ijeep/article/view/8142

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