Economic Development and Energy Transition Readiness Using Spline Approach: Evidence from Asia Region

Muhammad Syukri; Aditya Idris

doi:10.61255/jeemba.v4i4.1251

Authors

Muhammad Syukri Andi Djemma University, Indonesia
Aditya Idris Hasanuddin University, Indonesia

DOI:

https://doi.org/10.61255/jeemba.v4i4.1251

Keywords:

Economic Development, Energy Transition, Asia Countries, Spline Regression

Abstract

Purpose – This study examines the impact of energy transition readiness on economic development in Asian countries by analyzing five dimensions: regulation & political commitment, infrastructure, education & human capital, innovation, and finance & investments.

Design/Methodology/Approach – A spline regression approach was employed to capture the non-linear relationship between energy transition readiness and GDP per capita. Data from Asian countries were analyzed to identify threshold effects across readiness dimensions.

Findings – The results show heterogeneous non-linear effects of energy transition readiness on GDP. Regulation & political commitment and infrastructure have consistently significant impacts, while innovation and finance & investments become significant only after certain readiness thresholds. Education & human capital does not show a significant effect.

Originality/Value – This study extends the literature by demonstrating that the economic benefits of energy transition readiness are non-linear and vary across development stages. The findings provide policy guidance for Asian countries to adopt targeted, stage-specific strategies that strengthen energy transition readiness and promote sustainable economic development.

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