FOSTERING GREEN GROWTH IN ASEAN BY STRENGTHENING SME CONTRIBUTIONS TO CARBON NEUTRALITY

Naoyuki Yoshino, Ehsan Rasoulinezhad, Han Phoumin, Farhad Taghizadeh-Hesary and Lilu Vandercamme

Chapter 1 in Sustainable Growth and Green Policies:Navigating Energy and Environmental Challenges, 2025, pp 1-22 from World Scientific Publishing Co. Pte. Ltd.

Abstract: In numerous Asian nations, small and medium-sized enterprises (SMEs) are pivotal to economic growth, yet often remain beyond the reach of environmental regulations, which predominantly target larger corporations. This research investigates the link between SME activities and carbon emissions in ASEAN countries from 2010 to 2020, utilizing a fully modified ordinary least squares (FMOLS) model. The analysis reveals that SME operations substantially contribute to CO2 emissions, indicating a disconnect between environmental protection efforts and sustainable development goals. To guide SMEs toward carbon neutrality, the study recommends implementing specific green finance policies, expanding environmental regulations to encompass SMEs, and overhauling banking lending practices to promote sustainability based on SMEs’ environmental performance. These strategies aim to incorporate SMEs into ASEAN’s broader green growth and sustainable development agenda.

Keywords: Sustainable Growth; Green Policies; Energy Transition; Green Finance; Carbon Neutrality; Renewable Energy; Climate Change Policy; Environmental Sustainability; Economic Recovery; Carbon Markets; Sustainable Development; Energy Policy; Green Economic Recovery; Low-Carbon Economy; Financial Mechanisms For Sustainability; Climate Finance; Macroeconomic Policies and Sustainability; ESG Investing; Climate Resilience; Clean Energy Investment; Green Bonds; Sustainable Finance; Carbon Pricing; Energy Efficiency; Emerging Economies and Sustainability; Renewable Energy Financing; Circular Economy; Sustainable Investment; Climate Risk Assessment; Just Transition; ASEAN Energy Transition; BRICS Economies and Sustainability; OECD Green Policies; China's Carbon Market; EU Climate Policies; Southeast Asia Renewable Energy; Developing Economies and Climate Finance; Energy Poverty and Sustainable Solutions; Public Spending and Green Recovery; Net-Zero Policies; Econometric Models in Sustainability; Quantitative Analysis of Energy Markets; Cross-Sectional Autoregressive Distributed Lag Models; Behavioral Finance and Renewable Energy Investment; Policy Evaluation Frameworks; Decarbonization; Sustainable Development Goals; Green Growth (search for similar items in EconPapers)
JEL-codes: F64 O13 Q50 Q56 Q58 (search for similar items in EconPapers)
Date: 2025
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