Is Renewable Energy or Fossil Fuels Preferred in the Development of Asian Countries?

Authors : İbrahim Halil Sugözü, İraima Dorbonova

Pages : 18-39

Doi:10.59445/ijephss.1698154

View : 60 | Download : 34

Publication Date : 2025-07-02

Article Type : Research Paper

Abstract :The goal of all countries is to reduce dependence on fossil fuels and promote renewable energy consumption. Renewable energy sources occur naturally and have unlimited production potential, making them ideal for industrial, residential and transportation use. Unlike renewable energy, fossil fuel reserves are limited, depletable and cause environmental pollution. The aim of this study is to investigate the impact of gross domestic product, foreign direct investment, financial development and other proposed variables on renewable energy consumption in 26 Asian countries. We used panel data and estimated regressions using the Driscoll-Kraay method for the period 2000-2020. The panel regression results show that gross domestic product has a significantly negative relationship on renewable energy consumption; likewise, both gross capital formation and financial development are found to negatively affect renewable energy consumption. The findings show that economic and financial development in Asian countries has not yet promoted renewable energy consumption. It shows that in the current economic and financial situations of countries, the trend towards using more fossil fuels as a share of total energy resources continues.
Keywords : Yenilenebilir enerji, Fosil yakıtlar, Büyüme, Asya ülkeleri

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