Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)

<Previous Article In Volume
Next Article In Volume>

Macroeconomic Impact on Energy Sector in ASEAN

Authors
Rizza Aufa Shidqi1, *, Nora Amelda Rizal1
1School of Economics and Business, Telkom University, Bandung, Indonesia
*Corresponding author. Email: rizzaaufa@gmail.com
Corresponding Author
Rizza Aufa Shidqi
Available Online 19 November 2024.
DOI
10.2991/978-94-6463-558-4_16How to use a DOI?
Keywords
Capital Market; Carbon Emission; Energy Commodity; Green Investment; Stock Returns in Energy Sector
Abstract

Global conditions significantly impact the global economy, influencing oil prices, interest rates, and exchange rates, which in turn affect stock prices. Climate change has become a central concern, prompting a shift towards renewable energy production. However, Southeast Asia’s energy sector remains the largest regional contributor to greenhouse gas emissions. This study investigates the impact of carbon prices, Brent oil prices, palm oil prices, interest rates, and exchange rates on energy sector stock returns in ASEAN, over the short and long term. The study focuses on six ASEAN stock markets from 2017 to 2022, employing panel data and the Vector Error Correction Model (VECM). The findings reveal that carbon prices, Brent oil prices, palm oil prices, and exchange rates positively affect energy sector stock returns, while interest rates show no effect. Simultaneously, all factors combined influence stock returns. In the short term, carbon prices negatively affect returns, while Brent oil prices, palm oil prices, interest rates, and exchange rates have positive effects. Long-term analysis shows that only carbon prices negatively impact returns. These results highlight the influence of macroeconomic factors on capital markets, emphasizing the need for capital market players to understand these dynamics, particularly in the energy sector, and underscores the importance of transitioning to renewable energy to support sustainable development goals (SDGs).

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
19 November 2024
ISBN
978-94-6463-558-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-558-4_16How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Rizza Aufa Shidqi
AU  - Nora Amelda Rizal
PY  - 2024
DA  - 2024/11/19
TI  - Macroeconomic Impact on Energy Sector in ASEAN
BT  - Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)
PB  - Atlantis Press
SP  - 272
EP  - 291
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-558-4_16
DO  - 10.2991/978-94-6463-558-4_16
ID  - Shidqi2024
ER  -