Impacts of International Trade and FDI on the Consumption of Renewable Energy: Case in ASEAN Countries

Renewable energy will be a valuable energy source for future generation and need to be protected and invested smartly. The social, environmental, and economical problems can be omitted by use of renewable energy sources, because these resources are considered as environment-friendly, having no or little emission of exhaust and poisonous gases. This paper aims to investigate the role of international trade, real output, financial development, foreign direct investment (FDI), and innovation on the consumption of renewable energy (RE) in ASEAN countries of the world. We find that positive nexus among the international trade, real output, financial development, foreign direct investment (FDI) innovation and consumption of RE. The present study provides the guideline to regulators that they must form the regulation to restrict the consumption of RE in the presence of international trade, real output, financial development, foreign direct investment (FDI), and innovation. This study also implies further researches to recommend more effective solutions for the linkage between FDI and financial development for renewable energy for economic growth in a sustainable direction.