Role of Renewable and Non-Renewable Energy in Economic Growth of Emerging ASEAN Economies

Abstract

The study investigates the influence of renewable and non-renewable energy sources on economic growth in emerging ASEAN economies. Utilizing Bayesian mixed-effects regression on panel data from five ASEAN countries (ASEAN-5) spanning 1965-2019, the study reveals that traditional factors such as technology, human capital, physical capital, and labour play a more significant role in driving economic growth compared to renewable and non-renewable energy sources. Among energy sources, non-renewable energy demonstrates a more substantial impact on economic growth than renewable energy. Specifically, technology emerges as the most influential factor contributing to economic growth in emerging ASEAN economies. The study offers valuable implications for promoting energy transition in ASEAN countries by uncovering these insights.