How does economic growth moderate the impact of energy consumption on carbon emissions in the evaluation of Sustainable Development Goal 13?

Abstract

This study aims to examine the impact of non-renewable and renewable energy consumption on carbon emissions while assessing the moderating effect of economic growth. The research focuses on the evaluation of Sustainable Development Goal 13 in Asia-Pacific countries, particularly Indonesia, Australia, and China. The study employs moderated regression analysis using panel data from 2008 to 2024. This methodological approach allows for an in-depth examination of the relationships between energy consumption, economic growth, and carbon emissions. The results indicate that non-renewable energy consumption significantly increases carbon emissions, whereas renewable energy consumption negatively impacts carbon emissions, albeit insignificantly. Additionally, economic growth consistently contributes to higher carbon emissions, both directly and through its interaction with energy sources. The moderation analysis reveals distinct effects: economic growth exhibits quasi-moderation in the relationship between non-renewable energy consumption and carbon emissions, whereas its role in the relationship between renewable energy consumption and carbon emissions follows a pure moderation pattern. The study underscores the critical need for transitioning towards more sustainable energy sources to mitigate carbon emissions. Policymakers should focus on reducing dependence on non-renewable energy by accelerating the adoption of renewable energy through targeted incentives, regulatory reforms, and advancements in clean energy technologies.