Harnessing Innovations and Economic Freedom for Sustainable Energy in ASEAN: Insights from Panel ARDL Modeling
Hafiza Safia Shaukat (a,c), Nurul Hidayah (b), Anees Janee Ali (a), Muhammad Amir (a,c)

a) School of Management, Universiti Sains Malaysia, 11800, Pinang

b) Universitas Mercu Buana Jakarta, 11650, Indonesia.

c) Department of Commerce, University of the Punjab, 52250, Pakistan

*Email correspondence: hafiza.shaukat[at]pugc.edu.pk

Abstract

This research investigates the impact of green and technological innovations, as well as 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. It suggests enhancing support for green technology research and development, implementing regulatory frameworks that encourage the adoption of sustainable energy solutions, and creating incentives for private sector investment in renewable energy projects. Furthermore, the study advocates for strengthening regional cooperation to share best practices and technologies, accelerating the transition to a sustainable energy future.

Keywords: Green Innovation, Technological Innovation, Economic Freedom, Sustainable Energy, ASEAN, Panel ARDL Modeling

Topic: Innovations in Energy Business Models