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ABSTRACT

Energy transition is undertaken to promote the achievement of sustainable development, including social aspects. This study aims to explore the impact of energy transition on unemployment and income inequality in ASEAN. We utilize data from 10 ASEAN countries from 1996 to 2020, applying the ARDL method to examine the temporary and permanent effects of energy transition. The estimation results indicate that energy transition significantly reduces unemployment in both the short and long term in ASEAN. This transition drives the creation of new jobs in renewable energy industries and green infrastructure investments. We also find that energy transition reduces income inequality in both the short and long term, suggesting a more equitable distribution of the economic benefits from this transition across society. These findings highlight the need for policymakers to actively support the expansion of renewable energy sectors and green infrastructure to foster both economic growth and social equity. Additionally, government initiatives should focus on ensuring inclusive participation in the energy transition to maximize its benefits across all segments of society.

Keyword: energy transition, unemployment, income inequality, sustainable development