Renewable energy consumption and its impact on environmental quality: A pathway for achieving sustainable development goals in ASEAN countries

Abstract

Developing an inclusive policy agenda for ensuring sustainable development is a challenge for both developed and developing countries. The developing countries face challenges in designing policy that achieves sustainable development goals based on environmental awareness, and that is one of the main contributions of this research. By taking into account the SDG 13 (climate action) and 7 (clean and affordable energy) this study examines the influence of education, natural resource availability, financial development, urbanization, and economic growth for ASEAN nations from 1991 to 2018. For an empirical estimate, second-generation approaches are used. The findings demonstrate the energizing influence of renewable energy usage in altering the environmental quality. According to the empirical findings, renewable energy and education lower CO2 emissions by 0.46% and 0.22%, respectively. Financial development, urbanization, and natural resource depletion all have a 0.14%, 0.03%, and 0.08% impact on the environment, respectively. The heterogeneous causality analysis reveals the feedback effect, i.e., bidirectional causal links between education, carbon emissions, and the use of renewable energy. This empirical data implies that nations should enhance investment in renewable energy and education sectors, as well as prepare for renewable energy research and development, to ensure environmental sustainability. This research has policy implications for ASEAN countries in terms of renewable energy and education investments. Through this agenda, the objectives of SDG 13 and SDG 7 will be achieved, while SDG 4 will be targeted.