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Export Supply of Electricity from Laos to Thailand: An Econometric Analysis

Author

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  • Thongphet Lamphayphan

    (Graduate School of Economic Sciences, Hiroshima Shudo University, 1-1 Ozuka-Higashi 1-chome, Asaminami-ku, Hiroshima, 731-3195, Japan,)

  • Toshihisa Toyoda

    (Faculty of Economic Sciences, Hiroshima Shudo University, 1-1 Ozuka-Higashi 1-chome, Asaminami-ku, Hiroshima, 731-3195, Japan,)

  • Chris Czerkawsk

    (Faculty of Economic Sciences, Hiroshima Shudo University, 1-1 Ozuka-Higashi 1-chome, Asaminami-ku, Hiroshima, 731-3195, Japan)

  • Phouphet Kyophilavong

    (Faculty of Economics and Business Management, National University of Laos, POBOX7322, Dongdok, Vientiane, Laos.)

Abstract

Thailand, as the largest electricity market for Laos, has imported significant amounts of electricity from Laos since the operation of first hydropower plant in Laos. However, currently there have been a number of new power particularly nuclear power plants in Thailand being studied implying the possibility of reduction in Thailand s electricity import from Laos. Since Thailand is the largest market of Laos electricity, the change in demand for electricity from Thailand has substantial impact on the Lao economy. The first simulation conducted in this paper shows that Thailand reduces the import of electricity from Laos shows that it statistically has a large impact on Laos electricity export sector, due to the reduction of income from electricity export. However, the feasibility of nuclear power projects in Thailand became unclear since the incident of damages of nuclear power plants in Japan on 11 March 2011. Therefore, there may be a possibility that Thailand may abolish the nuclear power projects. Consequently, Thailand may increase the import of electricity from Laos. The second case of simulation shows that the increase of Thailand s electricity import from Laos has positive effect on Lao economy through the significant increase in income from electricity export. The increase in Thailand s electricity import from Laos, not only has positive effect on Thai economy in terms of increasing consumption of electricity stimulating economic activities in Thailand, but it also has positive effect on Lao economy in terms of increasing income from electricity export.

Suggested Citation

  • Thongphet Lamphayphan & Toshihisa Toyoda & Chris Czerkawsk & Phouphet Kyophilavong, 2015. "Export Supply of Electricity from Laos to Thailand: An Econometric Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 450-460.
    • Handle: RePEc:eco:journ2:2015-02-08
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    Cited by:

    1. Kyophilavong, Phouphet & Shahbaz, Muhammad & Kim, Byoungki & OH, Jeong-Soo, 2017. "A note on the electricity-growth nexus in Lao PDR," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1251-1260.
    2. Shigeru Kimura & Yanfei Li, 2016. "Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2015-rpr-16 edited by Yanfei Li & Shigeru Kimura, August.
    3. Vilaysouk, Xaysackda & Schandl, Heinz & Murakami, Shinsuke, 2017. "Improving the knowledge base on material flow analysis for Asian developing countries: A case study of Lao PDR," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 179-189.
    4. Yanrui Wu, 2016. "Electricity Market Integration in ASEAN: Institutional and Political Barriers and Opportunities," Chapters, in: Yanfei Li & Shigeru Kimura (ed.), Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers, chapter 4, pages 109-125, Economic Research Institute for ASEAN and East Asia (ERIA).

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    More about this item

    Keywords

    Electricity Export; Laos; Simultaneous Effects; Thailand;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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