Does renewable energy promote energy security and economic growth in the Association of Southeast Asian Nations?
Achieving the twin objectives of energy sustainability and economic development is central to global economic regions like the Association of Southeast Asian Nations (ASEAN). However, ASEAN economies suffer from energy supply shortages and are unable to match energy demand and supply, resulting in energy insecurity that can adversely affect the sustainable growth of the region. The purpose of this chapter is to examine the role played by renewable energy in delivering the twin objectives of energy security and economic growth in the ASEAN region. The panel data econometrics technique based on the Westerlund cointegration and Granger causality tests is used to examine long-run equilibrium relationships and causality among eight ASEAN countries from 1980 to 2018. The study finds a long-run relationship between renewable energy, energy security, and economic growth for ASEAN economies, and the results confirm a feedback relationship between renewable energy and economic growth, as well as a bidirectional causality relationship between energy security and economic growth. Therefore, we suggest that the ASEAN governments improve the supply of renewable energy by expanding channels for renewable energy funding to enhance energy security and achieve long-run sustainable economic growth in the region. Our results are consistent across different estimators and account for cross-sectional dependence, heterogeneity, and endogeneity.