How do digitalizing ICT and supply chain globalization affect renewable energy in ASEAN nations? The mediating role of sustainable environmental practices using the MMQR and PCSEs model

Abstract

The rapid growth of global energy demands and heightened environmental concerns highlight the critical need to transition to renewable energy sources. Identifying the influence of digitalization of ICT and global supply chains on sustainable practices to mitigate environmental impacts is crucial. This study aims to fill the research gap by examining the effects of manufacturing, digitalization of ICT, supply chain globalization, trade, and GDP on renewable energy consumption in the ASEAN countries. Utilized the Method of Moment Quantile Regression (MMQR) and Prais-Winsten regression with Panel-Corrected Standard Errors (PCSEs) to analyze data from 1995 to 2023. The MMQR results show that manufacturing has overall positive effects at lower quantiles, while digital ICT and supply chain globalization have negative effects across all quantiles. Trade shows an insignificant impact on renewable energy, while economic growth shows a negative effect at higher quantities. The PCSEs model shows stronger negative effects of supply chain globalization and trade on renewable energy consumption. Such effects highlight the need for policy efforts to target the incorporation of renewable energy because of the manifold impacts of economic processes and technology developments.