DOES RENEWABLE ENERGY REDUCE ESG RISK? EVIDENCE FROM ENERGY-INTENSIVE INDONESIAN FIRMS
DOI:
https://doi.org/10.26418/jebik.v15i1.105141Abstract
The main objective is to determine whether renewable energy adoption effectively reduces ESG risk and whether this effect varies depending on the level of energy intensity. Using a purposive sample of 180 firm-year observations from companies included in the ESG Leader Index during 2021–2023, the research applies fixed-effect regression analysis, supplemented by robustness tests that classify firms into low and high energy intensity groups. The findings indicate that companies adopting renewable energy experience significantly lower ESG risk compared to those that do not, with the effect being more pronounced in energy-intensive industries. In addition, the role of independent commissioners is shown to strengthen ESG risk reduction in high energy intensity firms, while institutional ownership has no significant impact. These results confirm stakeholder theory, legitimacy theory, and risk management theory, as renewable energy adoption simultaneously enhances stakeholder trust, secures social legitimacy, and mitigates sustainability-related risks. The novelty of this study lies in providing empirical evidence from an emerging market and in emphasizing the moderating role of energy intensity. JEL: G32, Q42, Q56.References
Abdelkader, M. G., Gao, Y., & Elamer, A. A. (2024). Board Gender Diversity and ESG Performance: The Mediating Role of Temporal Orientation in South Africa Context. Journal of Cleaner Production, 440, 140728. https://doi.org/10.1016/j.jclepro.2024.140728
Abdelkefi, S. N., & Jarboui, A. (2026). Does CEO Power Affect Operational Risk and ESG Disclosure in Islamic Banks? Evidence from the Banking Sector. Management & Sustainability: An Arab Review, In Press, 1–16. https://doi.org/10.1108/MSAR-04-2025-0124
Adisti, D., Novianti, T., & Suwarsinah, H. K. (2024). Environmental, Social, and Governance (ESG) Risk Management of PT XYZ Indonesia (ESG Disclosure Approach 2023). Business Review and Case Studies, 5(3), 498. https://doi.org/10.17358/brcs.5.3.498
Ahmed, S., Ali, A., & D’Angola, A. (2024). A Review of Renewable Energy Communities: Concepts, Scope, Progress, Challenges, and Recommendations. Sustainability, 16(5), 1749. https://doi.org/10.3390/su16051749
Aksana, T., Sayar, T., Elena, P., & Elena, S. (2025). Development of the Theory of Organizational Risk Management. SHS Web of Conferences, 212, 04055. https://doi.org/10.1051/shsconf/202521204055
Almaskati, N. (2023). To Reward or Not to Reward? Investors’ Response to Renewable Energy Investment by International Oil Companies. Borsa Istanbul Review, 23(4), 845–851. https://doi.org/10.1016/j.bir.2023.02.004
Alsagr, N., Belkhaoui, S., & Ullah, S. (2025). How Do Financial Risk and Banking Globalization Affect Renewable Energy? A Nonlinear Analysis. International Journal of Energy Economics and Policy, 15(5), 456–463. https://doi.org/10.32479/ijeep.20536
Alyahya, M., Agag, G., Aliedan, M., & Abdelmoety, Z. H. (2023). A Cross-Cultural Investigation of the Relationship between Eco-Innovation and Customers Boycott Behaviour. Journal of Retailing and Consumer Services, 72, 103271. https://doi.org/10.1016/j.jretconser.2023.103271
Ang, T.-Z., Salem, M., Kamarol, M., Das, H. S., Nazari, M. A., & Prabaharan, N. (2022). A Comprehensive Study of Renewable Energy Sources: Classifications, Challenges and Suggestions. Energy Strategy Reviews, 43, 100939. https://doi.org/10.1016/j.esr.2022.100939
Aransyah, M. F. (2023). How Effective is the Green Financing Framework for Renewable Energy? A Case Study of PT Pertamina Geothermal Energy in Indonesia. International Journal of Energy Economics and Policy, 13(5), 165–170. https://doi.org/10.32479/ijeep.14729
Areneke, G., Adegbite, E., & Tunyi, A. (2022). Transfer of Corporate Governance Practices into Weak Emerging Market Environments by Foreign Institutional Investors. International Business Review, 31(5), 101978. https://doi.org/10.1016/j.ibusrev.2022.101978
Arhinful, R., Mensah, L., Amin, H. I. M., Obeng, H. A., & Gyamfi, B. A. (2025). The Strategic Role of Sustainable Finance in Corporate Reputation: A Signaling Theory Perspective. Sustainability, 17(11), 5002. https://doi.org/10.3390/su17115002
Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG Performance on Firm Value and Profitability. Borsa Istanbul Review, 22, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Badreddine, A., & Cherif, H, L. (2024). Public Health Improvement by Reducing Air Pollution: A Strategy for the Transition to Renewable Energy. Health Economics and Management Review, 5(1), 1–14. https://doi.org/10.61093/hem.2024.1-01
Bagh, T., Fuwei, J., & Khan, M. A. (2024). From Risk to Resilience: Climate Change Risk, ESG Investments Engagement and Firm’s Value. Heliyon, 10(5), e26757. https://doi.org/10.1016/j.heliyon.2024.e26757
Bakhsh, S., Zhang, W., Ali, K., & Oláh, J. (2024). Strategy towards Sustainable Energy Transition: The Effect of Environmental Governance, Economic Complexity and Geopolitics. Energy Strategy Reviews, 52, 101330. https://doi.org/10.1016/j.esr.2024.101330
Bo, X., You, Q., Sang, M., Wang, P., Chen, S., Xu, X., Shan, W., Yang, Y., Bessagnet, B., Li, H., & Xiao, Y. (2023). The Impacts of Clean Energy Policies on Air Pollutants and CO2 Emission Reduction in Shaanxi, China. Atmospheric Pollution Research, 14(12), 101937. https://doi.org/10.1016/j.apr.2023.101937
Bolan, S., Padhye, L. P., Jasemizad, T., Govarthanan, M., Karmegam, N., Wijesekara, H., Amarasiri, D., Hou, D., Zhou, P., Biswal, B. K., Balasubramanian, R., Wang, H., Siddique, K. H. M., Rinklebe, J., Kirkham, M. B., & Bolan, N. (2024). Impacts of Climate Change on the Fate of Contaminants through Extreme Weather Events. Science of The Total Environment, 909, 168388. https://doi.org/10.1016/j.scitotenv.2023.168388
Borbor, J. D., Cranenburgh, K. C. V, & Luca, C. W. F. (2021). Social Risk Management as a Response to Increasing International Pressure for Social Performance. SPE Annual Technical Conference and Exhibition. https://doi.org/10.2118/206240-MS
Burch, C., Loraamm, R., & Nsude, C. (2025). When Beyond Compliance is the Expectation: The Realities of Environmental Planning and Permitting for Renewable Energy Projects in the Great Plains of the United States. Energy Research & Social Science, 125, 104108. https://doi.org/10.1016/j.erss.2025.104108
Cardillo, M. A. dos R., & Basso, L. F. C. (2025). Revisiting Knowledge on ESG/CSR and Financial Performance: A Bibliometric and Systematic Review of Moderating Variables. Journal of Innovation & Knowledge, 10(1), 100648. https://doi.org/10.1016/j.jik.2024.100648
Chau, L., Anh, L., & Duc, V. (2025). Valuing ESG: How Financial Markets Respond to Corporate Sustainability. International Business Review, 34(3), 102418. https://doi.org/10.1016/j.ibusrev.2025.102418
Chen, S., Song, Y., & Gao, P. (2023). Environmental, Social, and Governance (ESG) Performance and Financial Outcomes: Analyzing the Impact of ESG on Financial Performance. Journal of Environmental Management, 345, 118829. https://doi.org/10.1016/j.jenvman.2023.118829
Chen, W., Alharthi, M., Zhang, J., & Khan, I. (2024). The Need for Energy Efficiency and Economic Prosperity in a Sustainable Environment. Gondwana Research, 127, 22–35. https://doi.org/10.1016/j.gr.2023.03.025
Chen, W., Xie, Y., & He, K. (2024). Environmental, Social, and Governance Performance and Corporate Innovation Novelty. International Journal of Innovation Studies, 8(2), 109–131. https://doi.org/10.1016/j.ijis.2024.01.003
Chen, Z., He, M., & Ali, M. (2025). Natural Resources and Geopolitical Risk Impact on Energy Security Risk: The Role of Renewable Energy Consumption and Foreign Direct Investment. Natural Resources Forum, In Press. https://doi.org/10.1111/1477-8947.70006
Chen, Z., Umar, M., Su, C.-W., & Mirza, N. (2023). Renewable Energy, Credit Portfolios and Intermediation Spread: Evidence from the Banking Sector in BRICS. Renewable Energy, 208, 561–566. https://doi.org/10.1016/j.renene.2023.03.003
Cheng, H., Chaudhry, H. R., Kazi, I., & Umar, M. (2024). Unlocking Greener Supply Chains: A Global Innovative Perspective on the Role of Logistics Performance in Reducing Ecological Footprints. Journal of Innovation & Knowledge, 9(4), 100612. https://doi.org/10.1016/j.jik.2024.100612
Cosma, S., Rimo, G., & Schwizer, P. (2025). Environmental Controversies, Environmental Fines and Firms’ Default Risk. Research in International Business and Finance, 77, 102910. https://doi.org/10.1016/j.ribaf.2025.102910
Delbecq, S., Fontane, J., Gourdain, N., Planès, T., & Simatos, F. (2023). Sustainable Aviation in the Context of the Paris Agreement: A Review of Prospective Scenarios and Their Technological Mitigation Levers. Progress in Aerospace Sciences, 141, 100920. https://doi.org/10.1016/j.paerosci.2023.100920
Doğan, D., Söylemez, Y., Doğan, Ş., & Akça, N. (2025). The Impact of Financial Development on Renewable Energy Consumption: Evidence from RECAI Countries. Sustainability, 17(14), 6381. https://doi.org/10.3390/su17146381
Downie, C., & Peterson, M. J. (2025). Public Financial Institutions in the Energy Transition: The Impact of Export Credit Agencies. Climatic Change, 178(3), 40. https://doi.org/10.1007/s10584-025-03881-z
Elarabi, H. A. O., & Khalifa, W. (2025). Impact of Sustainable Finance on Business Financial Performance: Insight from London Stock Exchange Firms. Sustainability, 17(11), 4898. https://doi.org/10.3390/su17114898
Febriyanti, A. H., Murtadho, S. Al, & Almattushyva, Y. (2023). Not So Ambitious? Indonesia’s Coal Dependence Amidst the Era of Energy Transition. Global South Review, 5(1), 47. https://doi.org/10.22146/globalsouth.81488
Gentile, G., & Gupta, J. (2025). Orchestrating the Narrative: The Role of Fossil Fuel Companies in Delaying the Energy Transition. Renewable and Sustainable Energy Reviews, 212, 115359. https://doi.org/10.1016/j.rser.2025.115359
Hamm, J. A., Wolfe, S. E., Cavanagh, C., & Lee, S. (2022). (Re)Organizing Legitimacy Theory. Legal and Criminological Psychology, 27(2), 129–146. https://doi.org/10.1111/lcrp.12199
Handoyo, S. (2024). Public Governance and National Environmental Performance Nexus: Evidence from Cross-Country Studies. Heliyon, 10(23), e40637. https://doi.org/10.1016/j.heliyon.2024.e40637
Handoyo, S., & Anas, S. (2024). The Effect of Environmental, Social, and Governance (ESG) on Firm Performance: The Moderating Role of Country Regulatory Quality and Government Effectiveness in ASEAN. Cogent Business & Management, 11(1), 2371071. https://doi.org/10.1080/23311975.2024.2371071
Hardi, I., Idroes, G. M., Hamaguchi, Y., Can, M., Noviandy, T. R., & Idroes, R. (2025). Business Confidence in the Shift to Renewable Energy: A Country-Specific Assessment in Major Asian Economies. Journal of Economy and Technology, 3, 44–68. https://doi.org/10.1016/j.ject.2024.08.002
Hmouda, A. M. O., Orzes, G., & Sauer, P. C. (2024). Sustainable Supply Chain Management in Energy Production: A Literature Review. Renewable and Sustainable Energy Reviews, 191, 114085. https://doi.org/10.1016/j.rser.2023.114085
Hoang, T. H. V, Przychodzen, W., Przychodzen, J., & Segbotangni, E. A. (2021). Environmental Transparency and Performance: Does the Corporate Governance Matter? Environmental and Sustainability Indicators, 10, 100123. https://doi.org/10.1016/j.indic.2021.100123
Ilori, O. O., & Tanimowo, F. O. (2022). Heteroscedasticity Detection in Cross-Sectional Diabetes Pedigree Function: A Comparison of Breusch-Pagan-Godfrey, Harvey and Glejser Tests. International Journal of Scientific and Management Research, 05(12), 150–163. https://doi.org/10.37502/IJSMR.2022.51211
Işık, C., Ongan, S., & Islam, H. (2024). A New Pathway to Sustainability: Integrating Economic Dimension (ECON) into ESG Factors as (ECON-ESG) and Aligned with Sustainable Development Goals (SDGs). Journal of Ekonomi, 6(1), 34–39. https://doi.org/10.58251/ekonomi.1450860
Işık, C., Ongan, S., Islam, H., & Menegaki, A. N. (2024). A Roadmap for Sustainable Global Supply Chain Distribution: Exploring the Interplay of ECON-ESG Factors, Technological Advancement and SDGs on Natural Resources. Resources Policy, 95, 105114. https://doi.org/10.1016/j.resourpol.2024.105114
Jafar, R., Basuki, B., Windijarto, W., Setiawan, R., & Yaacob, Z. (2024). Environmental, Social and Governance (ESG) Disclosure and Cost of Equity: The Moderating Effects of Board Structures. Cogent Business & Management, 11(1), 2429794. https://doi.org/10.1080/23311975.2024.2429794
Jaiswal, K. K., Chowdhury, C. R., Yadav, D., Verma, R., Dutta, S., Jaiswal, K. S., SangmeshB, & Karuppasamy, K. S. K. (2022). Renewable and Sustainable Clean Energy Development and Impact on Social, Economic, and Environmental Health. Energy Nexus, 7, 100118. https://doi.org/10.1016/j.nexus.2022.100118
Justice, G., Nyantakyi, G., & Isaac, S. H. (2024). The Effect of Renewable Energy on Carbon Emissions through Globalization. Heliyon, 10(5), e26894. https://doi.org/10.1016/j.heliyon.2024.e26894
Kermarrec, G., Lösler, M., Guerrier, S., & Schön, S. (2022). The Variance Inflation Factor to Account for Correlations in Likelihood Ratio Tests: Deformation Analysis with Terrestrial Laser Scanners. Journal of Geodesy, 96(11), 86. https://doi.org/10.1007/s00190-022-01654-5
Khalid, F., Sun, J., Guo, J., & Srivastava, M. (2024). Green Corporate Image: Assessing the Effects of Climate Change Management Practices on Corporate Reputation. Corporate Social Responsibility and Environmental Management, 31(3), 1786–1801. https://doi.org/10.1002/csr.2663
Khatri, I., & Kjærland, F. (2023). Sustainability Reporting Practices and Environmental Performance Amongst Nordic Listed Firms. Journal of Cleaner Production, 418, 138172. https://doi.org/10.1016/j.jclepro.2023.138172
Kittaneh, O., & El-Kafrawy, P. (2026). Quantitative Analytics Techniques. Mathematical Modeling for Big Data Analytics (75–89). https://doi.org/10.1016/B978-0-44-326735-2.00014-6
Kumar, N. K. (2023). Autocorrelation and Heteroscedasticity in Regression Analysis. Journal of Business and Social Sciences, 5(1), 9–20. https://doi.org/10.3126/jbss.v5i1.72442
Li, D., Li, J., Tan, S., & Mahmood, T. (2025). Business, Finance, Energy Strategy, and Sustainability Integration: A Holistic Approach to Corporate Responsibility in the Green Era. Energy Strategy Reviews, 58, 101656. https://doi.org/10.1016/j.esr.2025.101656
Li, R., Wang, Q., & lejia, L. (2023). Does Renewable Energy Reduce per Capita Carbon Emissions and per Capita Ecological Footprint? New Evidence from 130 Countries. Energy Strategy Reviews, 49, 101121. https://doi.org/10.1016/j.esr.2023.101121
Li, R., Wang, Q., & Sun, J. (2025). Financial Risk and Renewable Energy: Exploring the Influence of Urbanization and Natural Resource Rents Across 112 Countries. Humanities and Social Sciences Communications, 12(1), 170. https://doi.org/10.1057/s41599-025-04481-z
Li, T., Li, X., & Liao, G. (2022). Business Cycles and Energy Intensity. Evidence from Emerging Economies. Borsa Istanbul Review, 22(3), 560–570. https://doi.org/10.1016/j.bir.2021.07.005
Liu, H., Zhang, X., & He, Y. (2025). Digital Transformation and ESG Performance—Empirical Evidence from Chinese Listed Companies. Sustainability, 17(13), 6165. https://doi.org/10.3390/su17136165
Lu, J., Chen, H., & Cai, X. (2022). From Global to National Scenarios: Exploring Carbon Emissions to 2050. Energy Strategy Reviews, 41, 100860. https://doi.org/10.1016/j.esr.2022.100860
Lulek, A., Sadowska, B., Walasek, R., & Brabec, Z. (2024). The Impact of Energy Companies on the Environment and Local Communities - Disclosures in Non-Financial Reports of Companies. Economics and Environment, 89(2), 786. https://doi.org/10.34659/eis.2024.89.2.786
Ma, B., & Wang, A. (2025). Exploring the Role of Renewable Energy in Green Job Creation and Sustainable Economic Development: An Empirical Approach. Energy Strategy Reviews, 58, 101642. https://doi.org/10.1016/j.esr.2025.101642
Mahajan, R., Lim, W. M., Sareen, M., Kumar, S., & Panwar, R. (2023). Stakeholder Theory. Journal of Business Research, 166, 114104. https://doi.org/10.1016/j.jbusres.2023.114104
Massagony, A., Pandit, R., & White, B. (2025). Political Economy of Energy Policy in Indonesia Towards Net Zero Emissions by 2060. Energy for Sustainable Development, 88, 101757. https://doi.org/10.1016/j.esd.2025.101757
Murtaza, G., & Luqman, M. (2025). Environmental Banking, Renewable Energy Projects, and Private Investments Crowd Out. In H. Dinçer, & S. Yüksel (Eds.), Renewable Energy Projects and Investments: Interdisciplinary Knowledge, Analysis, Opportunities, and Outlook (1 ed., pp. 177-200). Elsevier. https://doi.org/10.1016/B978-0-443-29869-1.00010-6
Muzayanah, I. F. U., Lean, H. H., Hartono, D., Indraswari, K. D., & Partama, R. (2022). Population Density and Energy Consumption: A Study in Indonesian Provinces. Heliyon, 8(9), e10634. https://doi.org/10.1016/j.heliyon.2022.e10634
Naseer, M. M., Guo, Y., & Zhu, X. (2025). Short-Term Costs and Long-Term Gains of ESG Initiatives in High-Risk Environments: Evidence from UK Firms. Development and Sustainability in Economics and Finance, 7, 100075. https://doi.org/10.1016/j.dsef.2025.100075
Nocoń, A. (2024). ESG Risk Management in Banks – towards its Measurement. Economics and Environment, 90(3), 737. https://doi.org/10.34659/eis.2024.90.3.737
Pan, A., Xu, S., & Zaidi, S. A. H. (2024). Environmental Impact of Energy Imports: Natural Resources Income and Natural Gas Production Profitability in the Asia-Pacific Economic Cooperation Countries. Geoscience Frontiers, 15(2), 101756. https://doi.org/10.1016/j.gsf.2023.101756
Park, Y.-N., Hahn, S. H., Lee, C.-K., Kim, J., & Back, K.-J. (2024). Developing an Integrated Resort’s (IR) Environmental, Social, and Corporate Governance (ESG) Measurement Scale. International Journal of Hospitality Management, 123, 103924. https://doi.org/10.1016/j.ijhm.2024.103924
Pomè, A. P., & Ciaramella, G. (2025). ESG Measurement Tool: An Approach to Measure the Sustainability Introduced in Real Estate Requalification Projects. In Getting to Zero - Beyond Energy Transition Towards Carbon-Neutral Mediterranean Cities (pp. 953–968). Springer Nature. https://doi.org/10.1007/978-3-031-82323-7_75
Purnamasari, E. D., Lazuarni, S., & Maleha, N. Y. (2024). Impact of Green Finance on Market Value and Reputation of Financial Service Companies. Jurnal Ilmiah Ekonomi Global Masa Kini, 15(2), 149–153. https://doi.org/10.36982/jiegmk.v15i2.4840
Qadir, S. A., Al-Motairi, H., Tahir, F., & Al-Fagih, L. (2021). Incentives and Strategies for Financing the Renewable Energy Transition: A Review. Energy Reports, 7, 3590–3606. https://doi.org/10.1016/j.egyr.2021.06.041
Qamruzzaman, M., & Karim, S. (2023). Clarifying the Relationship between Green Investment, Technological Innovation, Financial Openness, and Renewable Energy Consumption in MINT. Heliyon, 9(11), e21083. https://doi.org/10.1016/j.heliyon.2023.e21083
Rahman, T., Lipu, M. S. H., Shovon, M. M. A., Alsaduni, I., Karim, T. F., & Ansari, S. (2025). Unveiling the Impacts of Climate Change on the Resilience of Renewable Energy and Power Systems: Factors, Technological Advancements, Policies, Challenges, and Solutions. Journal of Cleaner Production, 493, 144933. https://doi.org/10.1016/j.jclepro.2025.144933
Rokhaniyah, S., Simamora, A. J., & Khotijah, S. A. (2025). Corporate Governance of Board Independence towards ESG Risk. Quality - Access To Success, In press(208), 362–365. https://doi.org/10.47750/QAS/26.208.37
Ruan, L., Yang, L., & Dong, K. (2024). Corporate Green Innovation: The Influence of ESG Information Disclosure. Journal of Innovation & Knowledge, 9(4), 100628. https://doi.org/10.1016/j.jik.2024.100628
Runtuk, J. K., Ng, P. K., & Ooi, S. Y. (2024). Challenges and Solutions in Working with Green Suppliers: Perspective from a Manufacturing Industry. Sustainability, 16(20), 8744. https://doi.org/10.3390/su16208744
Shahveran, E., & Yousefi, H. (2025). Replacing Fossil Fuel-Based Power Plants with Renewables to Meet Iran’s Environmental Commitments in the Electricity Sector. Renewable and Sustainable Energy Transition, 7, 100102. https://doi.org/10.1016/j.rset.2024.100102
Simamora, A. J. (2025). Environmental, Social, and Governance (ESG) Risk towards Stock Market Reaction in Indonesia. The International Journal of Financial Systems, 3(1), 1–20. https://doi.org/10.61459/ijfs.v3i1.45
Sitompul, H., Saifi, M., Hutahayan, B., & Sunarti. (2024). Use of Renewable Energy to Enhance Firm Performance: A Systematic Review. Sustainability, 16(21), 9157. https://doi.org/10.3390/su16219157
Sompolska-Rzechuła, A., Bąk, I., Becker, A., Marjak, H., & Perzyńska, J. (2024). The Use of Renewable Energy Sources and Environmental Degradation in EU Countries. Sustainability, 16(23), 10416. https://doi.org/10.3390/su162310416
Sulemana, I., Cheng, L., Agyemang, A. O., Osei, A., & Nagriwum, T. M. (2025). Stakeholders and Sustainability Disclosure: Evidence from an Emerging Market. Sustainable Futures, 9, 100445. https://doi.org/10.1016/j.sftr.2025.100445
Sun, Y., & Zhao, Z. (2024). Responsible Investment: Institutional Shareholders and ESG Performance. Pacific-Basin Finance Journal, 85, 102357. https://doi.org/10.1016/j.pacfin.2024.102357
Sunio, V., Mendejar, J., & Nery, J. R. (2021). Does the Greening of Banks Impact the Logics of Sustainable Financing? The Case of Bank Lending to Merchant Renewable Energy Projects in the Philippines. Global Transitions, 3, 109–118. https://doi.org/10.1016/j.glt.2021.12.001
Tiwari, A. K., Abakah, E. J. A., Shao, X., Le, T.-L., & Gyamfi, M. N. (2023). Financial Technology Stocks, Green Financial Assets, and Energy Markets: A Quantile Causality and Dependence Analysis. Energy Economics, 118, 106498. https://doi.org/10.1016/j.eneco.2022.106498
Tran, V. T., Phan, D. H. B., Tee, C.-M., & Nguyen, D. T. (2024). Unmasking the Carbon Conundrum: How Emissions Impact Stock Price Crash Risk. Finance Research Letters, 64, 105443. https://doi.org/10.1016/j.frl.2024.105443
Urbizu, L. G., Ortas, E., & Etxeberria, I. A. (2025). ESG Risk Exposure, Management and Firm Risk: New Evidence from a Panel Quantile Regression Approach. Cogent Business & Management, 12(1), 2585542. https://doi.org/10.1080/23311975.2025.2585542
Velte, P. (2023). Determinants and Financial Consequences of Environmental Performance and Reporting: A Literature Review of European Archival Research. Journal of Environmental Management, 340, 117916. https://doi.org/10.1016/j.jenvman.2023.117916
Voulvoulis, N., Giakoumis, T., Hunt, C., Kioupi, V., Petrou, N., Souliotis, I., Vaghela, C., & binti Wan Rosely, WIH. (2022). Systems Thinking as a Paradigm Shift for Sustainability Transformation. Global Environmental Change, 75, 102544. https://doi.org/10.1016/j.gloenvcha.2022.102544
Voumik, L. C., Ridwan, M., Rahman, Md. H, & Raihan, A. (2023). An Investigation into the Primary Causes of Carbon Dioxide Releases in Kenya: Does Renewable Energy Matter to Reduce Carbon Emission? Renewable Energy Focus, 47, 100491. https://doi.org/10.1016/j.ref.2023.100491
Wang, Q., Zhang, S., & Li, R. (2024). Impact of Risk Factors on the Link between Natural Resources Rents and Carbon Emissions: Evidence from Economic, Financial, and Political Risks. Humanities and Social Sciences Communications, 11(1), 1002. https://doi.org/10.1057/s41599-024-03414-6
Wen, B., He, Y., Jing, X., & Haroon, M. (2025). Advancing Renewable Energy and Green Finance for Economic Growth and Ecological Resilience. Energy Strategy Reviews, 59, 101747. https://doi.org/10.1016/j.esr.2025.101747
Yadav, A., & Mahalik, M. K. (2024). Does Renewable Energy Development Reduce Energy Import Dependency in Emerging Economies? Evidence from CS-ARDL and Panel Causality Approach. Energy Economics, 131, 107356. https://doi.org/10.1016/j.eneco.2024.107356
Yu, S., Liu, J., Hu, X., & Tian, P. (2022). Does Development of Renewable Energy Reduce Energy Intensity? Evidence from 82 Countries. Technological Forecasting and Social Change, 174, 121254. https://doi.org/10.1016/j.techfore.2021.121254
Yudhanto, W., & Simamora, A. J. (2023). Environmental, Social, and Governance Risk on Firm Performance: The Mediating Role of Firm Risk. Binus Business Review, 14(2), 223–234. https://doi.org/10.21512/bbr.v14i2.8935
Zhang, D., & Kong, Q. (2022). Green Energy Transition and Sustainable Development of Energy Firms: An Assessment of Renewable Energy Policy. Energy Economics, 111, 106060. https://doi.org/10.1016/j.eneco.2022.106060
Zhang, J. (2024). Energy Access Challenge and the Role of Fossil Fuels in Meeting Electricity Demand: Promoting Renewable Energy Capacity for Sustainable Development. Geoscience Frontiers, 15(5), 101873. https://doi.org/10.1016/j.gsf.2024.101873
Zhang, Y. (2024). Circular Economy Innovations: Balancing Fossil Fuel Impact on Green Economic Development. Heliyon, 10(18), e36708. https://doi.org/10.1016/j.heliyon.2024.e36708
ADDITIONAL REFERENCES
Center for Data and Information Technology on Energy Mineral Resources. (2023). Handbook of Energy & Economy Statistics of Indonesia. Ministry of Energy and Mineral Resource. https://www.esdm.go.id/assets/media/content/content-handbook-of-energy-and-economic-statistics-of-indonesia-2023.pdf
Institute for Essential Services Reform. (2025). Indonesia Energy Transition Outlook 2025, Navigating Indonesia’s Energy Transition at the Crossroads: A Pivotal Moment for Redefining the Future. Institute for Essential Services Reform. https://iesr.or.id/wp-content/uploads/2024/12/Indonesia-Energy-Transition-Outlook-2025-Digital-Version.pdf
Institute for Essential Services Reform, Lappeenranta University of Technology, & Agora Energiewende. (2021). Deep Decarbonization of Indonesia’s Energy System: A Pathway to Zero Emissions by 2050. Institute for Essential Services Reform. https://iesr.or.id/wp-content/uploads/2022/06/IESR-Deep-Decarbonization-Updated-V7.pdf
International Energy Agency. (2023). An Energy Sector Roadmap to Net Zero Emissions in Indonesia. International Energi Agency. https://www.iea.org/reports/an-energy-sector-roadmap-to-net-zero-emissions-in-indonesia
