The Impact of Corporate Social Responsibility, Energy Consumption, Energy Import and Usages and Carbon Emission on Sustainable Economic Development: Evidence from ASEAN countries (original) (raw)

Sustainability in ASEAN: The Roles of Financial Development towards Climate Change

Asian Journal of Economics and Empirical Research, 2021

Higher financial development and economic growth leads to higher production and consumption of a nation. This is because when a country is developed, the demand for infrastructure will increase which could significantly affect the country's environment. The main aim of this paper is to explore the link between energy efficiency, sustainable economic growth, population and financial development in five ASEAN countries (Malaysia, Thailand, Indonesia, Philippines and Vietnam). Panel data analysis was employed and the results show that financial development, economic growth, population and renewable energy are important factors in influencing climate change. Based on the results, increasing financial development, higher energy use, high population and increasing economic growth will generate more CO2 emissions and contribute to climate change. Thus, there are several policies suggested to balance the relationship between financial development and carbon emission levels, which should be considered and implemented by governments and policy makers in order to improve the environmental quality in ASEAN countries. In conclusion, in the five selected ASEAN countries, financial growth plays an important role in highlighting climate change issues. Many past studies have focused on the impacts of renewable energy consumption, population, economic growth and foreign direct investment on climate change. This study narrows the gap that exists in the literature by focusing on financial development, which is able to foster vigorous economic growth, especially in ASEAN countries. Overall, the results from the fixed effects estimates show that financial development is a significant factor and has a positive contribution towards climate change.

The Impact of Renewable Energy and Economic Development on Environmental Quality of ASEAN Countries

2021

Ikbar Pratama Faculty of Economics and Business, Universitas Medan Area, Medan, Sumatera Utara, Indonesia Email: ikbar.p@gmail.com Maintaining the quality of environmental is a global requirement and necessary to achieve high economic growth, especially through the use of bioenergy. This eco-significant requirement has gained the focus of recent studies and regulators. Following suit, the present study examines the impact of bioenergy production, biomass production, energy import, energy export, and economic development on the carbon emission of the ASEAN countries. This study extracts secondary data from published material such as World Development Indicators (WDI) from 2004 to 2019. This study has run the generalized method of moments along with the random effect model to test the relationships between the constructs. The study reveals that bioenergy production, biomass production, energy import, energy export, and economic development have a negative association with carbon emiss...

Empirical Relationship between Economic Growth, Energy Consumption and CO2 Emissions: Evidence from ASEAN Countries

iRASD Journal of Energy & Environment, 2020

This study tested the EKC (environment Kuznets curve) framework for selected 9 ASEAN countries of the time period of 1970-2019. The EKC framework hypothesis checked under 2 linkages, first one is to examine the relationship between energy consumption, GDP and CO2 and the other one is energy consumption, GDP square and CO2. The study examines both long and short run effect of energy consumption, GDP, square of GDP on carbon emission. Firstly, used Levin Lin Chu and Lm Pasaran panel unit root test to check the order of integration of indicators further for short and long run estimates are examined by panel Auto Regressive Distributive lag (ARDL / PMG). Results of LLC, Lm Pesaran, reveals that the variables have mixed integration order. Due to the mixed order of integration, PMG results showed a rise in energy consumption by 1%, caused a rise in emissions by 0.8377%. Carbon emission (CO2) decreased by 0.1622%, by increase the square of economic growth while increasing economic growth by 1%, leading to boosts carbon emissions by 2.05%. The negative and positive effect of GDP and square of economic growth approve the EKC theory. Furthermore, this study suggests that to maintain sustainable economic expansion goals policy makers ensure the use of sustainable energy sources (renewable energy) to maximize growth of country and minimize carbon emission. It results carbon sequestration, protect green environment and safe lives.

Significance of Economic Activities in Environmental Protection: Evidence from a Panel of 4-ASEAN Economies

International Journal of Energy Economics and Policy, 2021

Environmental degradation is increasing gradually due to economic activities by the Association of Southeast Asian Nations (ASEAN). ASEAN energy center estimated 4.4% increase in the consumption of final energy among ASEAN nations in 2030 which is greater than the average growth rate of 1.44%. The current study empirically analyzes the impact of economic activities on environmental protection across four largest ASEAN economies (Indonesia, Thailand, Singapore and Malaysia) over a period of 1998-2018. In order to achieve this objective, the study employs several panel econometric tests; ADF, panel cross-sectional dependence, Johansen-Fisher panel cointegration, FMOLS and country specific long run output method.” The study finds significant positive impact of non-renewable energy consumption (NRNC), GDP and labor force on CO2 emission. Renewable energy consumption (RNC) has negative impact on CO2 emission. As RNC causes reducing CO2 emission in the sample ASEAN economies, the study su...

Does Adaptation of Renewable Energy and Use of Service Industry Growth Diminution CO2 Emissions: Evidence of ASEAN Economies

iRASD Journal of Energy & Environment

According to recent years, ASEAN economies mainly focused on the development of renewable energy, which contributes to leading role of changing the economic structure towards service sector industry. So, most of the studies ignored the effect of heterogeneity and cross-sectional independence. It caused the biased and spurious results. Hence this study used the panel of 9 ASEAN economies of the time from 2000 to 2018, and Arelleno Bond Generalized Method of Moments (GMM) is used to examine the impact of renewable energy and the development of the service sector on Carbon emissions in ASEAN economies. Moreover, GMM overcomes the problem of cross-sectional dependence and heterogeneity so that the results will be unbiased and consistent. Results showed that an increase in the level of renewable energy usage and economic development leads to decrease in the level of CO2 emissions. Furthermore, development in the service sector industry and urbanization boost the level of emissions of car...

Determinants of sustainable development: Evidence from 12 Asian countries

Sustainable Development, 2019

This study examines the factors that determine sustainable development, measured by adjusted net saving, using panel data for 12 Asian countries for the 1990-2014 period. A panel data model is estimated using both random-effect and fixed-effect approaches. The Hausman test points to the superiority of the random-effect model over the fixedeffect model, which is apparent when the results of the two estimations are compared. The results of the random-effect estimation show a more significant and better overall fit. These results indicate a positive and significant effect of per capita income and financial development on sustainable development and a negative and significant effect of the inflation rate, natural resource rent, and time. The results suggest that maintaining a proper natural resource balance is necessary for sustainable development.

The Effect of Economic Growth, Foreign Direct Investment, and Energy Use on Environment Degradation: Evidenced from ASEAN Nations

Pakistan Journal of Humanities and Social Sciences, 2021

Literature evidenced that environmental degradation creates hurdles in economic development. So, this study highlights the leading macroeconomic indicators which affect the environment and investigates the nexus among FDI, energy utilization, economic development, and environmental pollution for ASEAN nations from 1990 to 2018. Panel Autor Regressive Distributive lag (ARDL) methodology is used to examine the impact of economic growth, foreign direct investment, and energy use on environmental degradation. Different panel unit roots (Im, Pesaran and Shin W-stat, Levin, Lin & Chu, ADF - Fisher Chi-square, PP - Fisher Chi-square) tests are applied to confirm the intergradation order, and results confirm that there exits I (0) and I(1) order of intergradation. There exists a unidirectional relationship between energy consumption and carbon emission of CO2 and CO2 to foreign direct investment in the long run. While in the short run, there does not exist any relationship. The results confirm the existence EKC hypothesis, which confirms there exits negative and positive effects of GDP and square of GDP on carbon emission. Hence this study concludes that its essential to develop some strategies and policies to guarantee economic stability. Additionally, reliable and sustainable power resources should be used for positive environmental changes. The carbon dioxide emission should be reduced for the GDP growth by utilizing different eco-technologies and renewable energy resources, which can nullify the effect of emission of CO2 to maintain the greenhouse environment.

The role of financial development, energy demand, and technological change in environmental sustainability agenda: evidence from selected Asian countries

The study seeks to examine the policy scheme of Asian countries and their efforts to achieve sustainable environmental practices in terms of green growth, green financing, and CO2emission reduction programs. This study investigates the role of GDP growth, sources of energy consumption, and other plausible hypothetical factors in CO 2 emissions using evidence from selected Asian countries over the period of 1980-2015. The contribution of this research is unique, with the use of these plausible variables under the framework of EKC, which makes this study different from other studies and helps fill a gap in the literature. This study has used panel Fully Modified OLS (FMOLS) test, the panel Granger causality test namely the Dumitrescu-Hurlin test (2012) and the Innovative Accounting Approach. The results of FMOLS for the full panel set indicates the presence of an EKC hypothesis, where the impact of GDP growth and the square of GDP growth on CO2 emissions are positive and negative, respectively, in the context of 10 Asian economies. The findings of FMOLS for lower income economies do not support the EKC hypothesis; however, the results exhibit that high and upper middle income economies maintain the EKC hypothesis. The results of high income and upper middle income economies confirm the existence of the environment Kuznets curve, and the results of GDP it show that both significantly positively impact logGDP it on CO2 emission.

CO2 emissions, electricity consumption and output in ASEAN

Applied Energy, 2010

This study examines the causal relationship between carbon dioxide emissions, electricity consumption and economic growth within a panel vector error correction model for five ASEAN countries over the period 1980-2006. The long-run estimates indicate that there is a statistically significant positive association between electricity consumption and emissions and a non-linear relationship between emissions and real output, consistent with the environmental Kuznets curve. The long-run estimates, however, do not indicate the direction of causality between the variables. The results from the Granger causality tests suggest that in the long-run there is unidirectional Granger causality running from electricity consumption and emissions to economic growth. The results also point to unidirectional Granger causality running from emissions to electricity consumption in the short-run.