Advancing Sustainable Energy Transitions in ASEAN Through Green Innovation, Technological Advancement, and Economic Freedom: Evidence from Panel ARDL Modeling

Abstract

This research investigates the impact of green and technological innovations, and economic freedom on the utilization of sustainable energy in ASEAN countries over the period from 1995 to 2023. Employing panel ARDL (Autoregressive Distributed Lag) modeling in EViews, the study explores these variables' dynamic and long-term relationships. The results demonstrate that green innovation significantly and positively affects sustainable energy utilization, underscoring the critical role of environmentally friendly technological advancements in enhancing energy sustainability. Technological innovations and economic freedom also exhibit positive associations with sustainable energy adoption, indicating that technological advancements and a liberal economic environment contribute to the increased use of renewable energy sources. The findings highlight that ASEAN countries must prioritize green innovation-oriented policies that can effectively drive sustainable energy utilization. These countries can support institutional green development and foster a more sustainable energy landscape by translating green innovations into practical applications. Additionally, the findings emphasize the importance of directing economic growth capital towards sustainable energy projects. This can be achieved by expanding and reforming existing policies to better align with sustainable development goals. The research provides several important recommendations for policymakers in the ASEAN region.