Economic growth, financial development, population and environmental pollution nexus in ASEAN: does green energy work to reduce environmental pollution?

Purpose This study examines how economic growth, financial development (FD), and renewable energy (RENEW) consumption, defined as green energy, affect environmental pollution in selected ASEAN countries, using export and population growth as control variables. Design/methodology/approach This study considers balanced panel data from 1990 to 2023 and applies the panel autoregressive distributed lag (ARDL) model based on the panel unit root and other required tests. Findings Based on the empirical results, 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-run 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. Originality/value 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.