From Subsidies to Sustainability: Unveiling the Economic Forces Shaping Renewable Energy Adoption in Emerging Economies

DOI

10.2991/978-94-6463-758-8_57How to use a DOI?

Keywords

Renewable energy; Fossil fuel subsidies; Foreign direct investment; GDP per capita; Southeast Asia

Abstract

This study investigates the combined impact of fossil fuel subsidies, foreign direct investment (FDI), and GDP per capita on renewable energy consumption in Southeast Asian countries, focusing on Indonesia, Vietnam, Malaysia, and Thailand. By employing panel data regression analysis from 2017 to 2022, the research explores how these economic variables shape the region’s transition towards renewable energy. The results reveal that fossil fuel subsidies significantly hinder renewable energy adoption, confirming that government support for fossil fuels creates market distortions that favor non-renewable energy sources. On the other hand, FDI and GDP per capita show a positive and significant relationship with renewable energy consumption, indicating that both foreign investments and economic growth are crucial drivers of the green energy transition. The findings suggest that reducing or eliminating fossil fuel subsidies, while attracting more foreign investments in renewable energy, will be key to accelerating the clean energy transition in Southeast Asia. Future research should explore the impacts of specific types of FDI and more targeted subsidy reforms to gain deeper insights into policy effectiveness.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nur Cholis
PY  - 2025
DA  - 2025/07/30
TI  - From Subsidies to Sustainability: Unveiling the Economic Forces Shaping Renewable Energy Adoption in Emerging Economies
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 676
EP  - 684
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_57
DO  - 10.2991/978-94-6463-758-8_57
ID  - Cholis2025
ER  -