Factors Affecting Renewable Energy for Sustainable Development: The Case of the Philippines.

Abstract

This paper examines the nexus between carbon dioxide (CO₂) emissions, electricity consumption, fossil fuels, foreign direct investment (FDI), gross domestic product (GDP), and renewable energy in the Philippines. This paper also explores the intricate relationships between carbon dioxide (CO₂) emissions, electricity consumption, fossil fuel use, foreign direct investment (FDI), gross domestic product (GDP), and renewable energy in the Philippines. Utilizing time-series data from 1990 to 2022 and applying advanced econometric techniques such as vector error correction modeling (VECM) and Granger causality tests, the study reveals the significant impacts of economic growth and energy consumption on CO₂ emissions. The findings highlight the crucial role of renewable energy in mitigating environmental degradation. Policy implications are discussed in the context of the Philippines' commitment to sustainable development and climate change mitigation, emphasizing the need for integrated policies that promote renewable energy and energy efficiency alongside economic growth. We use a comprehensive econometric analysis to understand these variables' dynamic interactions and causal relationships. The study employs time-series data from 1990 to 2022 and applies advanced econometric techniques, including vector error correction modeling (VECM) and Granger causality tests. The results highlight the significant impact of economic growth and energy consumption on CO₂ emissions while also underscoring the critical role of renewable energy in mitigating environmental degradation. Policy implications are discussed considering the Philippines' commitment to sustainable development and climate change mitigation.