20. The Impact of Financialization and Digital Structures on Renewable Energy Integration in ASEAN-5 Countries

This chapter explores the impact of financialization and digital structures on the integration of renewable energy (REN) in ASEAN-5 countries—Indonesia, Malaysia, the Philippines, Singapore, and Thailand. The study examines historical data on renewable energy consumption, revealing distinct trends and patterns across these nations. Financialization, measured by domestic credit to the private sector, shows a significant negative relationship with REN consumption, suggesting that financial markets may not yet be aligned with global sustainability trends. Digitalization, assessed through internet usage and mobile cellular subscriptions, presents contrasting impacts, with mobile connectivity negatively affecting REN usage. Economic growth, measured by GDP growth, also negatively impacts REN consumption, highlighting the challenge of aligning economic expansion with sustainable energy practices. The study concludes with policy recommendations aimed at fostering REN integration, including financial incentives for green investments, smart grid technologies, and regional cooperation. By addressing these factors, ASEAN-5 countries can accelerate their transition to sustainable energy sources.