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The Role of Renewable Energy Production, Energy Efficiency and Green Finance in Achieving Sustainable Economic Development: Evidence from Indonesia

Author

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  • Harin Tiawon

    (Faculty of Economic and Business, Palangka Raya University, Central Kalimantan, Indonesia,)

  • Miar Miar

    (Department of Economic Development, Faculty of Economics and Business Palangka Raya University, Palangka Raya, Indonesia.)

Abstract

The current study aims at analyzing the effect of renewable energy production, energy efficiency and green finance on sustainable economic development in Indonesia. The study is the pioneer one in the context of Indonesia that assesses the impact of above-mentioned variables on measuring sustainable economic development by measuring it in terms of economic growth and carbon emission. Time series data spanning over 1990-2019 period is analyzed using Autoregressive Distributed Lag Model (ARDL) because of presence of the mixed order of integration in data series. The findings of the study suggest that green finance, energy efficiency and renewable energy promote economic growth and reduce carbon emissions. The study concludes that renewable energy production, green finance and energy efficiency play positive role in achieving sustainable economic development in Indonesia. On the basis of the study findings, relevant policies for the government and policy makers to enhance sustainable economic development in Indonesia are also provided in the study.

Suggested Citation

  • Harin Tiawon & Miar Miar, 2023. "The Role of Renewable Energy Production, Energy Efficiency and Green Finance in Achieving Sustainable Economic Development: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 250-260, January.
    • Handle: RePEc:eco:journ2:2023-01-28
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    More about this item

    Keywords

    Renewable energy production; green finance; energy efficiency; sustainable development; Indonesia;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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