Effect of Economic Growth, Financial Development, and Renewable Energy Consumption on Environmental Pollution in ASEAN Countries: What is the Role of Green Finance and Green Energy?

The primary purpose of this study is to measure the impact of economic growth, financial development (FD), and green energy defined by renewable energy (RENEW) consumption on environmental pollution in ASEAN countries, where export and population growth are used as control variables. This study considers balanced panel data from 1990–2023 and applies the panel ARDL model based on the panel unit root and other required tests. In the findings, the short-run result indicates that the coefficient of GDP growth is negative but insignificant for determining CO₂ emissions. The consumption of green energy, specifically RENEW, significantly decreases environmental pollution; a one percent increase in RENEW consumption will result in a short-term decrease of -1.172011 percent in CO₂ emissions. In the long run, exports and population growth significantly and positively impact environmental pollution. The value of error correction is 26%; that is, it shows the speed of adjustment. Based on empirical results, this study contributes to existing literature by adding value and new insights in ASEAN countries through academic acceleration, environmental concern, and assuring sustainability.