An Analysis on The Factors that Facilitate Renewable Energy Consumption in Asean-5 Countries

Abstract

The aim of this study is to empirically shed light on the impacts of oil price and Trade Openness (TO) on renewable energy consumption across ASEAN-5 countries. This article incorporated annual time series data from 1997 to 2020 and employed panel data estimation analysis. All variables, including GDP, CO2, oil price, and TO are showing a significant impact on renewable energy consumption. Model Fixed Effect Model (FEM) was adopted for analysis after evaluating the Pooled Ordinary Least Squares (POLS) and Random Effect Model (REM) using the Hausman Test. Thus, the results revealed that the improvement in trade openness and oil price could generate renewable energy consumption for ASEAN-5 economies. Finally, the study has recommended a few policies to control the trade openness and oil price in promoting the use of renewable energy sources in ASEAN countries.

Keywords: trade openness, renewable energy consumption, CO2 emissions, oil price, ASEAN