Sustainable Development in ASEAN-5: Renewable Energy, Natural Resources Rent and Economic Globalization

https://doi.org/10.62157/ijbefs.v2i2.44

Authors

  • Yulia Geubrina Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Kota Banda Aceh, Aceh, Indonesia
  • Aliasuddin Aliasuddin Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Kota Banda Aceh, Aceh, Indonesia
  • Muhammad Abrar Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Kota Banda Aceh, Aceh, Indonesia
  • Raja Masbar Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Kota Banda Aceh, Aceh, Indonesia
  • Jumadil Saputra Department of Economics, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, 21030 Kuala Nerus, Terengganu, Malaysia

Keywords:

Renewable energy consumption, Natural resource rents, Economic globalization, Sustainable Development Index, ASEAN-5

Abstract

Sustainable development has emerged as a critical global concern, particularly in the context of energy consumption and environmental quality. In Southeast Asia, the heavy reliance on fossil fuels, especially oil, poses significant challenges to achieving sustainability goals. This study investigates the impact of renewable energy consumption, natural resource rents, and economic globalization on the Sustainable Development Index (SDI). Using panel data from five ASEAN countries—Indonesia, Malaysia, Thailand, Singapore, and the Philippines—from 2000 to 2020, the analysis applies panel quantile regression to explore the relationships among the variables. The findings reveal that renewable energy consumption and economic globalization contribute positively to the Sustainable Development Index, whereas natural resource rents exhibit a negative impact. A distinctive aspect of this research is its use of the Sustainable Development Index as a metric, offering a novel approach not extensively employed in prior studies. The insights derived from this study can inform the development of policies promoting sustainable development, particularly through adopting renewable energy and managing economic globalization. Additionally, the findings underscore the need to address the adverse effects of natural resource exploitation to enhance regional sustainability outcomes.

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Published

2024-11-30

How to Cite

Geubrina, Y., Aliasuddin, A., Abrar, M., Masbar, R., & Saputra, J. (2024). Sustainable Development in ASEAN-5: Renewable Energy, Natural Resources Rent and Economic Globalization. International Journal of Business, Economics & Financial Studies, 2(2), 73–79. https://doi.org/10.62157/ijbefs.v2i2.44

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Vol. 2 No. 2 (2024): November 2024

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