Renewable Energy Consumption in Industrial Clusters for Economic Growth- A Comparative Case in Indonesia and Vietnam

Abstract

The aim of following study was to examine the relationship between renewable energy consumption in industrial cluster and economic growth with a comparative case in Vietnam and in Indonesia. This study has used quantitative research design for assessing the renewable energy consumption and its link with economic growth in Vietnam and Indonesia for the period of 2010-2020. The independent variable in this study was energy consumption whereas; dependent variable was economic growth in countries above .The data is analysed through E-views using autoregressive distributed lag co-integration approach for long-run relationship, and long-run and short-run coefficients, Augmented Dickey Fuller testing. The findings have revealed that economic growth and energy consumption has association with each other. Within the given historic data, energy consumption has the ability to predict economic growth in both nations. This study also provides the guideline to the policymakers that they should develop the policies related to the energy consumption that enhance the economic growth of the country.