The Effect of Renewable and Nonrenewable Energy Use on Sustainable Development in South East Asia

Abstract

This research focuses on observing the effects of renewable and fossil fuel energy usage on the environment and economic growth in Southeast Asian countries. The study utilized the annual data of southeast Asian countries from 1990 to 2020 This study used gross fixed capital formation, foreign direct investment, renewable energy, population, non-renewable energy, and Labor force on fundaments of economic growth concerning sustainability. Fixed Effect, Radom Effect, and a two-step GMM methodology were used to estimate the link among the variables. The consequences of the study demonstrate that renewable energy intake has a destructive and statistically significant influence the dependent variable: CO2 emission whereas fossil energy has a noteworthy and positive influence on CO2 emissions. Foreign direct investment and population have a significantly positive influence on CO2 emission. While non-renewable and Renewable-energy intake has a momentous optimistic bearing on the economic progress of nominated ASEAN states along through labor force and capital formation. The universal energy needs depend on finite nonrenewable energy sources in the form of natural gas, oil, and coal which are exhaustible and hazardous to the environment. So, the need for hours is that the governments should escalate the use of renewable energy in their energy mix to increase the economy’s growth and environmental sustainability.