Open AccessFOSSIL FUEL PRICE, CARBON DIOXIDE EMISSION, AND RENEWABLE ENERGY CAPACITY: EVIDENCE FROM ASIAN DEVELOPING COUNTRIES
Author(s) -
Karren Lee-Hwei Khaw,
Toh Jia Ni
Publication year - 2021
Publication title -
s and p : sound and pictures
Language(s) - English
Resource type - Journals
ISSN - 1675-722X
DOI - 10.32890/ijbf2021.16.1.5
Subject(s) - fossil fuel , renewable energy , natural resource economics , coal , renewable fuels , subsidy , carbon tax , economics , environmental science , greenhouse gas , waste management , ecology , market economy , engineering , biology
This paper examined the impact of fossil fuel price and carbon dioxide (CO2) emission on renewable energy, using a sample of 14 Asian developing countries from the years 2000 to 2018. Fossil fuel prices, mainly those of crude oil and coal, are positively related to renewable energy capacity. CO2 emission is also a positive driver, indicating the significance of environmental concern. The results were consistent for both the upper-middle-income and lower-middle-income countries. Between fossil fuels and CO2 emission, the positive impact of CO2 emission outweighed that of fossil fuels. From a policy perspective, this paper concurs the need to shift huge subsidies away from fossil fuels to renewable energy and to enforce a heavy tax on CO2 emission for a sustainable environment.