Navigating resource scarcity and digital finance solutions for a sustainable future in ASEAN

Abstract

This research assesses how resource scarcity and digital finance affect sustainability in ASEAN countries, using data from eight members between 2005 and 2022. The CUP-FM technique highlights that digital banking significantly boosts sustainable energy, with a 1% increase leading to a 0.15% rise in sustainable energy generation. In contrast, a 1% increase in fossil fuel reserves results in a 0.43% decrease in sustainable energy output, underscoring the drawbacks of fossil fuel dependence. Expanding forest areas by 1% correlates with a 0.32% increase in sustainable energy development, stressing the need for forest conservation. Additionally, the presence of SMEs and patent applications are key drivers of sustainable energy, emphasizing the role of innovation. A positive correlation with annual temperature suggests its beneficial impact on green energy. To advance sustainability, ASEAN policymakers should enhance digital finance infrastructure, encourage renewable energy, support forest conservation, foster SMEs and innovation, and integrate climate resilience into energy strategies.