IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2015-02-08.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/1104/650
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijeep/article/view/1104/650
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brookes, Len, 1990. "The greenhouse effect: the fallacies in the energy efficiency solution," Energy Policy, Elsevier, vol. 18(2), pages 199-201, March.
    2. Toda, Hiro Y & Phillips, Peter C B, 1993. "Vector Autoregressions and Causality," Econometrica, Econometric Society, vol. 61(6), pages 1367-1393, November.
    3. Paul, Shyamal & Bhattacharya, Rabindra N., 2004. "Causality between energy consumption and economic growth in India: a note on conflicting results," Energy Economics, Elsevier, vol. 26(6), pages 977-983, November.
    4. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    5. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    6. Katherin Marton, 1986. "Technology Transfer to Developing Countries via Multinationals," The World Economy, Wiley Blackwell, vol. 9(4), pages 409-426, December.
    7. Hondroyiannis, George & Lolos, Sarantis & Papapetrou, Evangelia, 2002. "Energy consumption and economic growth: assessing the evidence from Greece," Energy Economics, Elsevier, vol. 24(4), pages 319-336, July.
    8. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    9. Ozturk, Ilhan, 2010. "A literature survey on energy-growth nexus," Energy Policy, Elsevier, vol. 38(1), pages 340-349, January.
    10. David A. Dickey & Dennis W. Jansen & Daniel L. Thornton, 1994. "A Primer on Cointegration with an Application to Money and Income," Palgrave Macmillan Books, in: B. Bhaskara Rao (ed.), Cointegration, chapter 2, pages 9-45, Palgrave Macmillan.
    11. Asif, M. & Muneer, T., 2007. "Energy supply, its demand and security issues for developed and emerging economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(7), pages 1388-1413, September.
    12. Stern, David I., 1993. "Energy and economic growth in the USA : A multivariate approach," Energy Economics, Elsevier, vol. 15(2), pages 137-150, April.
    13. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
    14. Mahadevan, Renuka & Asafu-Adjaye, John, 2007. "Energy consumption, economic growth and prices: A reassessment using panel VECM for developed and developing countries," Energy Policy, Elsevier, vol. 35(4), pages 2481-2490, April.
    15. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    16. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    17. Smulders, Sjak & de Nooij, Michiel, 2003. "The impact of energy conservation on technology and economic growth," Resource and Energy Economics, Elsevier, vol. 25(1), pages 59-79, February.
    18. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    19. Harty D. Saunders, 1992. "The Khazzoom-Brookes Postulate and Neoclassical Growth," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 131-148.
    20. Wolde-Rufael, Yemane, 2006. "Electricity consumption and economic growth: a time series experience for 17 African countries," Energy Policy, Elsevier, vol. 34(10), pages 1106-1114, July.
    21. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    22. Mohammed Issa Shahateet, 2014. "Modeling Economic Growth and Energy Consumption in Arab Countries: Cointegration and Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 349-359.
    23. Cuma Bozkurt & Yusuf Akan, 2014. "Economic Growth, CO2 Emissions and Energy Consumption: The Turkish Case," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 484-494.
    24. Ghosh, Sajal, 2002. "Electricity consumption and economic growth in India," Energy Policy, Elsevier, vol. 30(2), pages 125-129, January.
    25. Benjamin S. Cheng, 1999. "Causality Between Energy Consumption and Economic Growth in India: An Application of Cointegration and Error-Correction Modeling," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 34(1), pages 39-49, January.
    26. J. Daniel Khazzoom, 1980. "Economic Implications of Mandated Efficiency in Standards for Household Appliances," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 21-40.
    27. Richard B. Howarth, 1997. "Energy Efficiency And Economic Growth," Contemporary Economic Policy, Western Economic Association International, vol. 15(4), pages 1-9, October.
    28. Joysri Acharyya, 2009. "Fdi, Growth And The Environment: Evidence From India On Co2 Emission During The Last Two Decades," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 34(1), pages 43-58, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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, January.
    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Avik Sinha, 2015. "Modeling Energy Efficiency and Economic Growth: Evidences from India," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 96-104.
    2. Sinha, Avik & Bhattacharya, Joysankar, 2014. "Is Economic Liberalization causing Environmental Degradation in India? An Analysis of Interventions," MPRA Paper 102262, University Library of Munich, Germany, revised 2014.
    3. Sinha, Avik, 2015. "Quadrilateral Causal Analysis of Economic Growth in India," MPRA Paper 100353, University Library of Munich, Germany, revised 2015.
    4. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    5. Jaruwan Chontanawat, 2020. "Dynamic Modelling of Causal Relationship between Energy Consumption, CO 2 Emission, and Economic Growth in SE Asian Countries," Energies, MDPI, vol. 13(24), pages 1-27, December.
    6. Rohin Anhal, 2013. "Causality between GDP, Energy and Coal Consumption in India, 1970-2011: A Non-parametric Bootstrap Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 3(4), pages 434-446.
    7. Hasanov, Fakhri & Bulut, Cihan & Suleymanov, Elchin, 2017. "Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 369-386.
    8. Cosimo Magazzino, 2015. "Energy consumption and GDP in Italy: cointegration and causality analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(1), pages 137-153, February.
    9. Naser, Hanan, 2014. "On the cointegration and causality between Oil market, Nuclear Energy Consumption, and Economic Growth: Evidence from Developed Countries," MPRA Paper 65252, University Library of Munich, Germany, revised 25 Mar 2015.
    10. Nour Wehbe & Bassam Assaf & Salem Darwich, 2018. "Étude de causalité entre la consommation d’électricité et la croissance économique au Liban," Post-Print hal-01944291, HAL.
    11. Dagher, Leila & Yacoubian, Talar, 2012. "The causal relationship between energy consumption and economic growth in Lebanon," Energy Policy, Elsevier, vol. 50(C), pages 795-801.
    12. Costantini, Valeria & Martini, Chiara, 2010. "The causality between energy consumption and economic growth: A multi-sectoral analysis using non-stationary cointegrated panel data," Energy Economics, Elsevier, vol. 32(3), pages 591-603, May.
    13. Chor Foon Tang and Eu Chye Tan, 2012. "Electricity Consumption and Economic Growth in Portugal: Evidence from a Multivariate Framework Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    14. Stephan B. Bruns & Christian Gross & David I. Stern, 2014. "Is There Really Granger Causality between Energy Use and Output?," The Energy Journal, , vol. 35(4), pages 101-134, October.
    15. Shahbaz, Muhammad & Rasool, Ghulam & Ahmed, Khalid & Mahalik, Mantu Kumar, 2016. "Considering the effect of biomass energy consumption on economic growth: Fresh evidence from BRICS region," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1442-1450.
    16. Farzana Sharmin & Mohammed Robayet Khan & Mohammed Robayet Khan, 2016. "A Causal Relationship between Energy Consumption, Energy Prices and Economic Growth in Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 477-494.
    17. Jaganath Behera, 2015. "Examined the Energy-Led Growth Hypothesis in India: Evidence from Time Series Analysis," Energy Economics Letters, Asian Economic and Social Society, vol. 2(4), pages 46-56, December.
    18. Naser, Hanan, 2015. "Analysing the long-run relationship among oil market, nuclear energy consumption, and economic growth: An evidence from emerging economies," Energy, Elsevier, vol. 89(C), pages 421-434.
    19. Shahiduzzaman, Md & Alam, Khorshed, 2012. "Cointegration and causal relationships between energy consumption and output: Assessing the evidence from Australia," Energy Economics, Elsevier, vol. 34(6), pages 2182-2188.
    20. Andreas Georgantopoulos, 2012. "Electricity Consumption and Economic Growth: Analysis and Forecasts using VAR/VEC Approach for Greece with Capital Formation," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 263-278.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2015-02-08. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.