Fifteenth International Conference on Environmental, Cultural, Economic & Social Sustainability

Abstract

Climate change requires the world to regulate the supply of energy consumed. The high level of urbanization follows increasing energy consumption needs. To minimize the impact of urbanization on the environment, changes from consumption of fossil fuels to renewable energy are needed. In addition, renewable energy is thought to be a clean energy source and does not have greenhouse gas emissions. Renewable energy is a source of alternative energy that is a solution and attracts the attention of the public and current policy makers. The United Nations Framework Convention on Climate Change (UNFCCC) formed by the United Nations says renewable energy as a movement to reduce greenhouse gases. This institution continues to consistently voice the shift towards environmentally friendly energy through the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs) issued by the United Nations. This study analyzes the impact of urbanization on the consumption of renewable energy by using data from 2000 to 2015 in eleven Asian countries. The method used in this study is panel data analysis. The estimation results show that urbanization and economic growth have a positive and significant relationship to the consumption of renewable energy. Whereas industrial value added has a significant and negative effect on the consumption of renewable energy.