Renewable Energy Consumption and Economic Growth: Empirical Evidence from ASEAN Countries

Kamarudin Othman, Nor Ananiza Azhar, Roseamilda Mansor, Norhafiza Hashim, Mohd Firdaus Ruslan and Mohd Shafiz Saharan
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Kamarudin Othman: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia
Nor Ananiza Azhar: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia
Roseamilda Mansor: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia
Norhafiza Hashim: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia
Mohd Firdaus Ruslan: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia
Mohd Shafiz Saharan: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 9, 9315-9331

Abstract: This paper investigates the nexus between renewable energy consumption, economic growth, and carbon emissions in ASEAN-9 from 2000 to 2024 using a nonlinear panel ARDL framework that accounts for heterogeneity, asymmetries, and regional spillovers. The dataset combines renewable energy shares, GDP, COâ‚‚ intensity, foreign direct investment, and inflation. Results reveal pronounced cross-country differences. Malaysia shows rapid adjustment, with renewable expansions supporting growth while contractions impose disproportionately high costs. Singapore exhibits contractionary effects from renewable adoption, reflecting structural constraints and high integration costs. Indonesia and Myanmar also converge, but outcomes remain sensitive to policy credibility and financial conditions. At the regional level, the panel confirms long-run convergence and significant cross-sectional dependence, underscoring exposure to common shocks. Sub-sample analysis points to a post-2010 soft decoupling of growth from emissions, coinciding with major policy shifts. The findings highlight the need for credible national frameworks and deeper financial markets, alongside ASEAN-wide cooperation on incentives, grid integration, and pooled financing. Renewables must be positioned not as an environmental add-on but as a central driver of industrial and regional strategy.

Date: 2025
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