The Relationship between Energy Consumption, Carbon Emissions and Economic Growth in ASEAN-5 Countries

Abstract

The importance of energy has made it the focus of many studies, discussions and policies. The studies carried out provide important ideas about the extent and in which direction the energy policies to be implemented affect the economic activities, and as a result, what kind of path should be followed. In terms of policy makers, determining the direction of causality is extremely important for the curriculum of the projects. In this study, the relationship between energy consumption, carbon emissions and economic growth in ASEAN-5 countries between the years 1990-2021 was examined. As a result of the causality analysis, it was found that there is a bilateral causality relationship between economic growth and CO2 emissions in Singapore; it has been determined that there is a unilateral causality relationship from economic growth to CO2 emissions in the Philippines, and from CO2 emissions to economic growth in Indonesia and Malaysia. In addition, there is a bi-directional causality relationship between economic growth and energy consumption in Singapore; there is a unilateral causality relationship from economic growth to energy consumption in Indonesia and the Philippines.

Keywords

• economic growth
• energy consumption
• carbon emissions
• ASEAN-5