Analysis of Fuel Oil Consumption, Green Economic Growth and Environmental Degradation in 6 Asia Pacific Countries

Abstract

This study aims to fill the gap of previous research in the form of developing studies between fuel oil consumption, green economic growth and environmental degradation in 6 selected Asia Pacific countries (Australia, China, India, Indonesia, South Korea and Thailand) by considering the determinants during the period 2007-2020 by using a simultaneous panel model approach. The important findings of this study are grouped into 3 analytical models. First, green economic growth, environmental degradation and cleaner energy have a negative effect on fuel oil consumption, while GDP per capita has a positive effect. Second, fuel oil consumption, environmental degradation and militarization have a negative effect on green economic growth, while technological innovation and cleaner energy have a positive effect. Third, green economic growth and cleaner energy have a negative effect on environmental degradation, while fuel oil consumption, health expenditure and poverty have a positive effect. The policy implication that can be applied is to utilize renewable energy such as biofuel oil to implement a clean development mechanism because the increasing demand for fuel oil consumption will result in CO2 emissions which are a factor causing increased environmental degradation and decreased green growth in a country.