FACTORS INFLUENCING RENEWABLE ENERGY SOURCES: THE CASE OF VIETNAM AND SELECTED SOUTHEAST ASIAN COUNTRIES

Abstract

Developing renewable energy aims to both create economic development and ensure environmental protection in implementing sustainable development strategies. Therefore, it is urgent for countries to have policies that prioritize the use of renewable energy sources to reduce the negative impact of economic activities on the environment. Research on factors affecting renewable energy development conducted in Vietnam and selected Southeast Asian countries in the period 1995 to 2022, and using the ordinary least squares method (OLS), fixed effects (FEM) and random effects (REM) and especially assessing the dependence relationship between countries through PCSE testing, the research results show that there is no evidence to confirm the relationship between foreign direct investment and renewable energy development. However, trade openness and economic growth have a negative impact on renewable energy development. The study also found that tourism development has a positive impact on renewable energy development in Vietnam and selected Southeast Asian countries. Finally, the study discusses some solutions for renewable energy development in Vietnam and selected Southeast Asian countries in the coming time.