The Sustainable Path Forward: Economic Sectors, Energy Efficiency, and CO2 Productivity in ASEAN's Economic Landscape

This study examines the linkages between the ASEAN countries' energy productivity, economic structure, and production-based CO2 productivity. Using the OECD Green Growth and World Bank data, analyzed using Python, a strong positive correlation was found between energy productivity and CO2 productivity. The results confirm a strong positive relationship between energy productivity and CO2 productivity. An increase in efficiency increases energy productivity and decreases carbon intensity. On the other hand, the analysis shows that the services and industrial sectors have an insignificant association with CO2 productivity, rendering it lacking in environmental relevance in these sectors. However, the agriculture sector has a strong positive contribution, which suggests the role of such a sector to increase CO2 productivity. The sustainability of ASEAN’s economic growth is increasingly influenced by its integration into global value chains. As such, these insights point toward the complexity of sustainable growth, where targeted energy efficiency measures and sector-specific policies are needed to balance economic expansion with environmental sustainability. Policymakers in the ASEAN region should work on sectoral diversification strategies, incentives for sustainable agriculture practices, and fostering technological innovation to improve energy efficiency in industries.