What role green finance and natural resources play for energy transition in ASEAN nations? A pathway to mitigating environmental degradation

The intensifying environmental crisis is a pressing global issue, compelling action from all sectors of society, including individuals, governments, and policymakers, to confront these challenges. Existing research focuses on macroeconomic and environmental factors, often neglecting the influence of natural resources and green finance. This study seeks to bridge this gap by emphasizing natural resources and their influence on renewable energy deployment, in conjunction with green finance, economic growth, and ecological degradation, within the context of ASEAN nations from 2000 to 2018. By employing the moment quantile regression (MMQR) method, this research uncovers nuanced insights into how natural resources interact with renewable energy initiatives. The results indicate a complex relationship where the exploitation of natural resources and economic growth tend to negatively impact the adoption of renewable energy solutions. In contrast, green finance and ecological degradation positively influence the uptake of renewable energy. To ensure the reliability of these findings, additional analyses using the fully modified ordinary least square (FMOLS) and fixed-effects ordinary least square (FE-OLS) methods were conducted, which confirmed the initial outcomes. The study's results highlight the intricate dynamics between natural resource utilization and renewable energy adoption, underscoring the need to reevaluate how natural resources are managed and leveraged in pursuing sustainable energy solutions. It becomes evident that green finance can serve as a strategic tool not only for mitigating the negative impacts of natural resource exploitation but also for enhancing the adoption of renewable energy, thereby contributing to the resolution of environmental concerns.