<![CDATA[This study examines the dynamic trade-off in the relationship between trade openness and the renewable energy share in Indonesia by distinguishing between short-run and long-run dynamics. Using annual data from 1990 to 2021, the study employs the Autoregressive Distributed Lag (ARDL) approach. The results reveal a clear reversal across time horizons: trade openness is negatively and significantly associated with the renewable energy share in the short run, while the relationship becomes positive and significant in the long run. The negative short-run relationship is consistent with the scale-effect mechanism, whereby trade-related economic expansion may increase energy demand that is not immediately matched by renewable energy utilization. In contrast, the positive long-run relationship is consistent with technique-related adjustments associated with access to cleaner technologies, energy-efficient capital goods, and knowledge that require time to be adopted and implemented. These mechanisms provide a theoretical interpretation rather than being directly identified by the empirical model. The findings highlight the importance of coordinating trade and energy policies to address short-run energy pressures while strengthening Indonesia’s capacity to benefit from longer-term opportunities associated with international integration.]]>
Copyrights © 2026
