The Impact of Renewable Energy, CO2 Emissions, and Population on Economic Growth in ASEAN 2013-2023

Syarifah

doi:10.61730/h9jrrm93

Authors

Syarifah Universitas Negeri Medan

DOI:

https://doi.org/10.61730/h9jrrm93

Keywords:

ASEAN, CO₂ emissions, Economic Growth, Panel data, population, Renewable energy

Abstract

Purpose: This study investigates how renewable energy consumption, CO₂ emissions, and population size influence economic growth in selected ASEAN countries Indonesia, Malaysia, Thailand, the Philippines, and Vietnam over the period 2013–2023. It aims to provide insights into the role of environmental and demographic factors in achieving sustainable economic development. Methods: The research employs panel data regression analysis, utilizing both Fixed Effects Model (FEM) and Random Effects Model (REM). The Hausman test is applied to determine the most appropriate model for estimation, ensuring robust and reliable results across the dataset. Results: The findings reveal that renewable energy consumption has a positive and statistically significant effect on economic growth. In contrast, CO₂ emissions negatively impact economic performance, indicating environmental degradation may hinder growth. Population size shows a generally positive influence, although its effect varies across countries and periods. Conclusions: The study emphasizes the importance of expanding renewable energy use and implementing effective emission control policies to foster sustainable growth. Policymakers should balance economic expansion with environmental preservation. Originality: This research offers updated panel evidence from ASEAN economies, integrating environmental and demographic variables within a decade-long analysis.

References

Baltagi, B. H. (2005). Econometric Analysis of Panel Data (3rd ed.). John Wiley & Sons.

Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. Quarterly Journal of Economics, 110(2), 353–377.

Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). New York: McGraw-Hill.

Heidari, H., Katircioğlu, S. T., & Saeidpour, L. (2015). Economic growth, CO₂ emissions, and energy consumption in the five ASEAN countries. International Journal of Electrical Power & Energy Systems, 64, 785–791.

Manulusi, M. R., Rahmatia, R., Madris, M., & Saudi, N. D. S. (2025). Environmental Kuznets Curve in ASEAN: Effects of growth, trade, renewable energy, and industrialization. Advances in Economics, Business and Management Research.

Mu’min, M. S., Susilowati, I., Qudsyina, H., Wahyuni, H. A., Rismawati, S., Kusumawardhani, H. A., & Miah, M. R. (2023). Nexus between economic growth, renewable energy, industry value added and CO₂ emissions in ASEAN. Jurnal Ekonomi Pembangunan, 24(2), 265–281.

Mulyani, M., Hidayat, A. M., Tejaarief, B., Kenedi, K., & Agustini, A. W. (2025). The impact of renewable energy consumption on economic growth in seven ASEAN countries. Marginal Journal of Management Accounting General Finance and International Economic Issues, 5(1), 14–30.

Priastiwi, D., & Fatmawati, A. (2026). Economic growth and carbon emissions: An ARDL panel study of 10 ASEAN countries. Jurnal Ilmu Ekonomi, 10(1), 72–82.

Saboori, B., Sulaiman, J., & Mohd, S. (2012). Economic growth and CO₂ emissions in Malaysia: A cointegration analysis of the Environmental Kuznets Curve. Energy Policy, 51, 184–191.

United Nations (UN). (2024). UN Data and Population Statistics. Retrieved from https://data.un.org

Wang, S., Zhou, C., Li, G., & Feng, K. (2016). The relationship between economic growth, energy consumption, and CO₂ emissions. Science of the Total Environment, 542, 360–371.

Wooldridge, J. M. (2010). Econometric Analysis of Cross Section and Panel Data (2nd ed.). MIT Press.

World Bank. (2024). World Development Indicators. Retrieved from https://www.worldbank.org