Economic Study of the Factors Influencing Renewable Energy Consumption

Abstract

A total of five Northeast Asian countries with very dynamic economic levels were examined. Multiple economic, environmental, and social factors from 1995 to 2020 were examined to find their impact on renewable energy consumption. Regression modeling for the panel data was conducted to find this relation and make predictions using statistical software such as STATA SE/18 and Eviews 12.0. As trade openness and net export are highly related to each other, both containing export and import indicators, in order not to cause a severe correlation between them, they were studied using two different models. Gross fixed capital formation (investment) and net export would positively affect REC. However, GDP per capita, labor force, trade openness, GHG, and energy consumption would negatively influence the dependent variable.