Authors :
Yulia Indrawati
Volume/Issue :
Volume 8 - 2023, Issue 12 - December
Google Scholar :
http://tinyurl.com/uk44kcbp
Scribd :
http://tinyurl.com/ycxbpy63
DOI :
https://doi.org/10.5281/zenodo.10409619
Abstract :
The energy transition from fossil energy to
renewable energy is an important discussion for each
country along with the decreasing supply of fossil energy
due to the increasing dependence on fossil energy
demand. The shift towards decentralized renewable
energy provides added value in encouraging the
sustainability of economic development, especially in
ASEAN. This study aims to analyze the impact of fossil
and renewable energy consumption on the sustainability
of economic development and measure the speed of
adjustment of the energy transition. The analytical
method used is the Panel Vector Error Correction Model
(VECM Panel) covering 8 ASEAN countries. The results
showed that renewable energy and natural resource rents
variables were significant for economic growth, while
fossil energy consumption was not statistically significant.
The response of economic growth to fossil energy shows a
small deviation compared to renewable energy with a
positive and negative relationship pattern and reaches a
steady state. This indicates the increasing commitment of
countries in ASEAN 8 to the use of renewable energy in
development. The increase in consumption of fossil
energy is responded to by a deviation in the response of
renewable energy that is greater than if there is an
increase in consumption of renewable energy to fossil
energy. It takes 6 periods of time horizon time to reach
steady state conditions for the transition from fossil
energy showing renewable energy.
Keywords :
Energy Transition, Fossil Energy, Renewable Energy, Sustainable Economic Development.
The energy transition from fossil energy to
renewable energy is an important discussion for each
country along with the decreasing supply of fossil energy
due to the increasing dependence on fossil energy
demand. The shift towards decentralized renewable
energy provides added value in encouraging the
sustainability of economic development, especially in
ASEAN. This study aims to analyze the impact of fossil
and renewable energy consumption on the sustainability
of economic development and measure the speed of
adjustment of the energy transition. The analytical
method used is the Panel Vector Error Correction Model
(VECM Panel) covering 8 ASEAN countries. The results
showed that renewable energy and natural resource rents
variables were significant for economic growth, while
fossil energy consumption was not statistically significant.
The response of economic growth to fossil energy shows a
small deviation compared to renewable energy with a
positive and negative relationship pattern and reaches a
steady state. This indicates the increasing commitment of
countries in ASEAN 8 to the use of renewable energy in
development. The increase in consumption of fossil
energy is responded to by a deviation in the response of
renewable energy that is greater than if there is an
increase in consumption of renewable energy to fossil
energy. It takes 6 periods of time horizon time to reach
steady state conditions for the transition from fossil
energy showing renewable energy.
Keywords :
Energy Transition, Fossil Energy, Renewable Energy, Sustainable Economic Development.
