Role of oil price volatility, energy efficiency, and financial stability on sustainable energy production

ABSTRACT

In the COVID-19 crisis, many economies suffered from sustainable energy production. The emergence of the COVID-19 crises, extreme volatility in oil prices, limited energy efficiency in energy systems, and weak form of financial stability were the key reasons for it. However, considering these issues, a recent study aims to analyze them. ASEAN countries' energy efficiency and crude oil price volatility are examined as a solution to how financial conditions might be utilized to handle energy efficiency issues and crude oil price volatility. Extending it, the study aims to identify the influence of financial stability on crude oil price volatility and energy efficiency issues. To do this, GMM is used. According to the study's findings, environmental mitigation was determined to be important at 18%, and financial stability and carbon risk significant at 21%. Global warming concerns have been raised due to the ASEAN nations' 19.5% link between financial stability and emissions drift. A country's financial stability is necessary for implementing green economic recovery strategies, among the most widely accepted measures to reduce energy efficiency and guarantee long-term financial potential on the national scale. The study on green economic growth also provides the associated stakeholders with sensible policy consequences on this importance.