Mui-Yin Chin, Sheue-Li Ong, Daniel Boon-Yann Ooi, Wahyudi Wibowo
The depletion of non-renewable energy sources and their environmental impact highlight the urgent need for a transition towards sustainable alternatives. Renewable energy emerges as a promising solution, particularly for regions like the Association of Southeast Asian Nations (ASEAN), comprising 10 countries that are vital to both the Asian and global economies. This study explores whether renewable energy consumption significantly contributes to ASEAN's economic growth by employing a comprehensive methodological approach, including classical panel models, spatial panel models, and the panel Autoregressive Distributed Lag (ARDL) model. The combined use of these models allows for a comprehensive analysis by capturing internal country dynamics, cross-border spillover effects, and both short- and long-run relationships. The empirical findings reveal that renewable energy consumption has a significant positive impact on economic growth in ASEAN, with short-run effects requiring at least three years to manifest. By integrating diverse models, this study provides a more robust and nuanced understanding of renewable energy's role in driving growth. Based on these results, ASEAN policymakers are encouraged to promote renewable energy consumption through targeted investments, incentives, and infrastructure development, aligning sustainability with pro-growth strategies like trade openness and technological innovation. © 2026, Faculty of Economics and Administration. All rights reserved.
Faculty of Accountancy, Finance and Business, Tunku Abdul Rahman University of Management & Technology, Jalan Genting Kelang, Kuala Lumpur, 53300, Malaysia; College of Business and Economics, University of Johannesburg, Johannesburg, Malaysia; Faculty of Business and Economics, Universiti Malaya, Kuala Lumpur, 50603, Malaysia; School of Mathematical Sciences and Center for Applied Mathematics of Guangxi, Guangxi Minzu University, Nanning, 530006, China; Faculty of Business, Widya Mandala Surabaya Catholic University, Jalan Dinoyo 42-44, Surabaya, 60265, Indonesia