An empirical investigation of the nexus among renewable energy, financial openness, economic growth, and environmental degradation in selected ASEAN economies.

This study investigates the relationship between economic growth, renewable energy consumption, financial openness, and environmental degradation in selected ASEAN (Association of Southeast Asian Nations) countries (Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam) from 1996 to 2018. We aim to analyze how macroeconomic situation, energy-related factors, and financial determinants contribute to environmental deprivation in selected countries whose growth has recently been substantial. To address this issue, we employ second-generation panel data regression models and quantiles with fixed-effects estimators. Initially, the cointegration analysis supports a long-run association between the variables of our interest. Empirical findings confirm the environmental Kuznets curve hypothesis, but it seems valid only for Singapore. Moreover, results highlight the ecological role of renewable energy for ASEAN countries to achieve Sustainable Development Goals, such as transitioning to a low-carbon economy and reducing air pollution. On the contrary, financial openness is a cause that positively influences CO 2 emissions. This research offers practical policy recommendations for many countries, including the ASEAN economies, to attain sustainable development. [Display omitted] • The link between carbon dioxide emissions and macroeconomic and energy indicators is analyzed on an ASEAN panel. • The inverted-U EKC hypothesis seems to hold true for Singapore. • Renewable energy mitigates environmental degradation while capital account openness reduces environmental quality. • Financial openness might be a key policy factor in mitigating carbon emissions. [ABSTRACT FROM AUTHOR]