research article

Impacts of economic growth on Vietnam’s renewable energy consumption

Abstract

Over the period 1990 - 2021, Vietnam had a rapid increase in economic growth, which went hand in hand with the demand for energy consumption. Even so, there has been a reduction in Vietnam’s share of renewable energy consumption. This challenges the country’s goal of achieving net-zero emissions by 2050. Therefore, the research topic aims to analyze the impact of economic growth on Vietnam’s renewable energy consumption from 1990 - 2021. This study used the Autoregressive Distributed Lags method to investigate the relationship dynamics in both the long and short-term contexts. The estimation results reveal the impacts of economic growth on renewable energy consumption. Specifically, in both the long and short term, the agriculture sector harms renewable energy consumption. In contrast, the service sector has a positive impact. The industrial sector has a negative effect in the long term but shows a positive shift in the short term. Population growth increases the demand for renewable energy in the long term but decreases it in the short term. Supportive government policies are essential to encourage the further adoption of RE in Vietnam

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