Do technological innovation, financial development, and economic freedom limit energy demand The analysis of ASEAN+3

Abstract

The study investigates the effect of the five selected variables on fossil fuel energy demand in the ASEAN+3 group during 1998–2018. The P.M.G.-ARDL approach was applied. The results revealed that financial development, growth, and environmental pollution significantly increase energy consumption. While technological innovation reduce it. While the result of economic freedom has been neglected. Moreover, there is a one-way causality extending from financial development, economic freedom, environmental pollution, and technological innovation to energy consumption except for the expansion of the economy which has a bidirectional causal relationship. This study recommends promoting the encouragement of green investment and environmentally friendly policies to control the sustainability of the economy and the environment.