Growth Threshold Effect on Renewable Energy Transition in Southeast Asian Economies: Insights from News Announcements

Mustapha Mukhtar () and Idris Abdullahi Abdulqadir ()
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Mustapha Mukhtar: School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China
Idris Abdullahi Abdulqadir: School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China

Sustainability, 2025, vol. 17, issue 21, 1-14

Abstract: This article examines the growth threshold effect on renewable energy transition in eight Southeast Asian countries from 2000 to 2023. Utilizing panel data and threshold regression analysis, the study confirms the following established findings: (1) There is evidence of a significant impact of the moderating effect of growth/FDI on the nexus between access to clean energy and the renewable energy transition in Southeast Asian countries. (2) There is evidence of a significant impact of the moderating effect of growth/trade on the nexus between access to clean energy and the renewable energy transition in Southeast Asian countries. (3) There is evidence of a significant effect of the moderating effect of growth/R&D on the nexus between access to clean energy and the renewable energy transition in Southeast Asian countries. (4) Lastly, the complementary growth threshold of 1.68% is to be checked for access to clean energy and technologies and the renewable energy transition in Southeast Asian countries. Therefore, policies should promote sustained growth while ensuring investments in research and development, trade, and foreign direct investment (FDI), which are expected to benefit the region in the long term. In the short term, it may be necessary to reassess current policies to prevent misallocation of resources, ensuring progress towards SDG-7 before the 2030 deadline. Future research should investigate additional factors that could facilitate a sustained transition to renewable energy and examine the complex relationship between economic growth, access to clean energy, and renewable energy transition in Southeast Asian countries.

Keywords: renewable energy transition; access to clean energy; economic growth; panel threshold; interaction models; endogeneity test; SDG-7; Southeast Asia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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