Effect of Renewable Energy Consumption on Environmental Degradation in ASEAN Countries

Abstract

This study focused on estimating the long-run and short-run relationship of dross domestic savings, development of the industrial sector, and renewable energy consumption towards the environmental degradation in Association of Southeast Asian (ASEAN) countries. We conducted the Pooled Mean Group (PMG) estimation techniques developed by Pesaran et al.(1999). The results highlighted that all the variables present significant environmental degradation while using renewable energy has abolished environmental pollution in ASEAN countries. Therefore, policymakers must take action to design sustainable economic development mechanisms and convert industrial investments to environmentally friendly projects to improve green technology.