Work

The Effect of Environmental, Social, and Governance (ESG) Performance in Shaping Indonesia's Energy Transitions

Year: 2025

Type: article

Abstract: ESG factors are essential for determining an equitable and sustainable energy future. Using the Autoregressive Distributed Lag approach, this study investigates the effect of ESG performance on Indonesia's energy transition. The results show that the governance index has a positive effect on energy transition, while the environmental and social indices have a negative impact in the short run. In the long run, however, all three ESG indexes support the transition to clean energy. ESG must be given top priority by Indonesian authorities in energy transition initiatives to enable a smooth transition and support a sustainable and secure energy future for the nation.

Source: International Journal of Academic Research in Business and Social Sciences

DOI: 10.6007/ijarbss/v15-i12/27287

Authors: Yogeeswari Subramaniam, Ravi Palanimuthu, Muzafar Shah Habibullah

Institutions: University of Technology Malaysia, Manonmaniam Sundaranar University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Affordable and clean energy, Climate action, Industry, innovation and infrastructure

Open Access status: diamond

Funder: Ministry of Higher Education, Malaysia