Business confidence in the shift to renewable energy: A country-specific assessment in major Asian economies
ABSTRACT: The growing awareness of the importance of transitioning to sustainable energy sources emphasizes the necessity of fostering business optimism toward renewable energy, as businesses wield significant influence in driving innovation and scaling up renewable energy deployment. Therefore, thi...
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KeAi Communications Co., Ltd.
2025-11-01
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| Series: | Journal of Economy and Technology |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2949948824000349 |
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| author | Irsan Hardi Ghalieb Mutig Idroes Yoshihiro Hamaguchi Muhlis Can Teuku Rizky Noviandy Rinaldi Idroes |
| author_facet | Irsan Hardi Ghalieb Mutig Idroes Yoshihiro Hamaguchi Muhlis Can Teuku Rizky Noviandy Rinaldi Idroes |
| author_sort | Irsan Hardi |
| collection | DOAJ |
| description | ABSTRACT: The growing awareness of the importance of transitioning to sustainable energy sources emphasizes the necessity of fostering business optimism toward renewable energy, as businesses wield significant influence in driving innovation and scaling up renewable energy deployment. Therefore, this study investigates the impact of business confidence on long-term renewable energy generation in selected major Asian economies: China, Japan, South Korea, Indonesia, and Turkey. Through country-specific assessments, we utilized three methods capable of yielding long-term empirical results: Fully-Modified OLS (FMOLS), Dynamic OLS (DOLS), and Canonical Cointegrating Regressions (CCR). The study also conducted a robustness check by utilizing the Robust Least Squares (RLS) method, preceded by multiple preliminary tests, to ensure the validity and reliability of the results. The findings show that businesses in all selected countries exhibit confidence toward long-term renewable energy. However, there are variations in the confidence level, with businesses in Japan, South Korea, and Turkey demonstrating high confidence while those in China and Indonesia show low confidence. The study also found a trade-off between business confidence levels and energy consumption. In Japan, South Korea, and Turkey, high business confidence correlates with a negative impact of energy consumption, while in Indonesia, low business confidence is aligned with a positive effect of energy consumption on renewable energy. This suggests that business confidence and energy consumption dynamics influence renewable energy development. Policy recommendations tailored to each of the selected countries are provided to address these findings, aiming to enhance business trust and optimism in renewable energy within major Asian economies. |
| format | Article |
| id | doaj-art-1508ce712dd74c20b8f38ebfb59dc90f |
| institution | DOAJ |
| issn | 2949-9488 |
| language | English |
| publishDate | 2025-11-01 |
| publisher | KeAi Communications Co., Ltd. |
| record_format | Article |
| series | Journal of Economy and Technology |
| spelling | doaj-art-1508ce712dd74c20b8f38ebfb59dc90f2025-08-20T02:39:31ZengKeAi Communications Co., Ltd.Journal of Economy and Technology2949-94882025-11-013446810.1016/j.ject.2024.08.002Business confidence in the shift to renewable energy: A country-specific assessment in major Asian economiesIrsan Hardi0Ghalieb Mutig Idroes1Yoshihiro Hamaguchi2Muhlis Can3Teuku Rizky Noviandy4Rinaldi Idroes5Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia; Economic Modeling and Data Analytics Unit, Graha Primera Saintifika, Aceh Besar, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia; Energy and Green Economics Unit, Graha Primera Saintifika, Aceh Besar, IndonesiaDepartment of Economics, Faculty of Economics and Business Administration, Kyoto University of Advanced Science, Kyoto, JapanSocial Science Research Lab, BETA Akademi, Istanbul, TurkeyInterdisciplinary Innovation Research Unit, Graha Primera Saintifika, Aceh Besar 23371, IndonesiaSchool of Mathematics and Applied Sciences, Universitas Syiah Kuala, Banda Aceh 23111, Indonesia; Corresponding author.ABSTRACT: The growing awareness of the importance of transitioning to sustainable energy sources emphasizes the necessity of fostering business optimism toward renewable energy, as businesses wield significant influence in driving innovation and scaling up renewable energy deployment. Therefore, this study investigates the impact of business confidence on long-term renewable energy generation in selected major Asian economies: China, Japan, South Korea, Indonesia, and Turkey. Through country-specific assessments, we utilized three methods capable of yielding long-term empirical results: Fully-Modified OLS (FMOLS), Dynamic OLS (DOLS), and Canonical Cointegrating Regressions (CCR). The study also conducted a robustness check by utilizing the Robust Least Squares (RLS) method, preceded by multiple preliminary tests, to ensure the validity and reliability of the results. The findings show that businesses in all selected countries exhibit confidence toward long-term renewable energy. However, there are variations in the confidence level, with businesses in Japan, South Korea, and Turkey demonstrating high confidence while those in China and Indonesia show low confidence. The study also found a trade-off between business confidence levels and energy consumption. In Japan, South Korea, and Turkey, high business confidence correlates with a negative impact of energy consumption, while in Indonesia, low business confidence is aligned with a positive effect of energy consumption on renewable energy. This suggests that business confidence and energy consumption dynamics influence renewable energy development. Policy recommendations tailored to each of the selected countries are provided to address these findings, aiming to enhance business trust and optimism in renewable energy within major Asian economies.http://www.sciencedirect.com/science/article/pii/S2949948824000349Renewable EnergyBusiness ConfidenceChinaJapanSouth KoreaIndonesia |
| spellingShingle | Irsan Hardi Ghalieb Mutig Idroes Yoshihiro Hamaguchi Muhlis Can Teuku Rizky Noviandy Rinaldi Idroes Business confidence in the shift to renewable energy: A country-specific assessment in major Asian economies Journal of Economy and Technology Renewable Energy Business Confidence China Japan South Korea Indonesia |
| title | Business confidence in the shift to renewable energy: A country-specific assessment in major Asian economies |
| title_full | Business confidence in the shift to renewable energy: A country-specific assessment in major Asian economies |
| title_fullStr | Business confidence in the shift to renewable energy: A country-specific assessment in major Asian economies |
| title_full_unstemmed | Business confidence in the shift to renewable energy: A country-specific assessment in major Asian economies |
| title_short | Business confidence in the shift to renewable energy: A country-specific assessment in major Asian economies |
| title_sort | business confidence in the shift to renewable energy a country specific assessment in major asian economies |
| topic | Renewable Energy Business Confidence China Japan South Korea Indonesia |
| url | http://www.sciencedirect.com/science/article/pii/S2949948824000349 |
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