Does Globalisation and Financial Development Promote Renewable Energy Transitions in ASEAN Countries?—An Empirical Revisit

This study empirically revisits the unsolved debate of whether globalisation (GLZ) and financial development (FIND) promote the renewable energy (RE) transition in the context of the Association of Southeast Asian Nations (ASEAN) and the Regional Comprehensive Economic Partnership (RCEP). The panel-corrected-standard-error technique infers that a one-point increase in GLZ and FIND reduces the RE share in total energy consumption in the ASEAN region by 0.71% and 8.41%, respectively. It finds that the investment in energy with private participation moderates the relationship between FIND and RE, and FDI except in energy moderates the relations between GLZ and RE. The country-specific estimation suggests that Cambodia, Malaysia, Philippines, Thailand, and Vietnam be concerned about GLZ, while the Philippines and Vietnam also be concerned about FIND since these might affect their RE transition process. The ASEAN policymakers should earmark funds specifically for renewables and prudently navigate the trade globalisation process to transform this region into a low-carbon region.