The role of environmental degradation and green investment on the renewable energy production in ASEAN countries: evidence using novel MMQR technique

While ASEAN economies are enjoying economic growth, their environmental condition is worsening. One effective solution is to shift toward green investment in order to increase renewable energy production. This study examines the role of environmental degradation and green investment on renewable energy production in the context of ASEAN economies. The study analyzed critical factors of environmental degradation such as carbon, GHG, NO2 emissions, GDP, and finally green investment in the sample of ASEAN markets. Secondary data was used and extracted from WDI indicators from 2001 to 2020. To achieve the study objective, method of moments quantile regression (MMQR) model has been applied to reveal the association among variables. The empirical evidences divulged that environmental degradation could increase renewable energy production. Results implies that with the threatening impact of harmful emissions, economies shift their interest toward renewable energy production so that the cycle could be reversed. Also, the findings revealed the positive impact of green investment on renewable energy production that assures that clean energy investments are crucial for economies; thus, these shreds of evidences aid in the development of renewable energy policies which could be helpful to mitigate environmental challenges.