EXAMINING THE SUSTAINABLE ENERGY AND CARBON EMISSION ON THE ECONOMY: PANEL EVIDENCE FROM ASEAN

Abstract

Currently, the role of electricity cost and associated carbon emission has become a global issue that affects financial development and economic growth. Thus, the present article analyses the role of energy cost and carbon emission on the economy of Indonesia, Malaysia, and Thailand from 2000 to 2018. For data analysis, panel models such as fixed and random effect are applied to examine the association between the constructs. The results show that there is an adverse impact of carbon emissions on GDP growth, while the share of renewable energy in total energy positively impacts the growth dynamic. Additionally, carbon emissions have a negative impact on financial development in all three ASEAN economies. Finally, electricity prices along with carbon emissions are observed as negative determinants of patent applications. Furthermore, the present study has the potential to guide upcoming researchers about the future research on this area and can also offer guidance for policymakers in developing policies related to electricity prices and carbon emission and their role in economic and financial growth.