IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v147y2020ics0301421520301804.html
   My bibliography  Save this article

CAREC energy corridor: Opportunities, challenges, and IMPACT of regional energy trade integration on carbon emissions and energy access

Author

Listed:
  • Qadir, Saeed
  • Dosmagambet, Yergali

Abstract

The research paper examines Central Asia Regional Economic Cooperation (CAREC) integrated energy market potentials, challenges, and opportunities for 1) harnessing untapped renewable energy potential; 2) promoting the cross-border trade to cater the rising regional demand mismatch of electricity; 3) improving energy security; and 4) reducing the carbon footprint of the region. The research demonstrates that the CAREC Energy Corridor (CEC) will optimize regional trade cooperation by building cross-border energy trade infrastructure, systems, and governance mechanisms by employing a Regional Public Goods (RPG) framework. The research finds that a one percent increase in energy imports within the region is associated with the reduction in carbon dioxide emissions by 0.245 kg per $ of GDP; the increase in the Gross Domestic Product (GDP) per unit of energy use by 0.233 per kg of oil equivalent; and the growth in electricity production from renewable sources by 0.414 kW hour, thus improving regional electricity affordability, access, and energy security. The cost benefit analysis reveals that traditional (fossil fuel or hydro) power generation and transmission costs must either beat or match the price competition and transmission flexibility options offered by renewables to sustain competitiveness of the regional electricity market.

Suggested Citation

  • Qadir, Saeed & Dosmagambet, Yergali, 2020. "CAREC energy corridor: Opportunities, challenges, and IMPACT of regional energy trade integration on carbon emissions and energy access," Energy Policy, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:enepol:v:147:y:2020:i:c:s0301421520301804
    DOI: 10.1016/j.enpol.2020.111427
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421520301804
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2020.111427?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bera, Anil K. & Sosa-Escudero, Walter & Yoon, Mann, 2001. "Tests for the error component model in the presence of local misspecification," Journal of Econometrics, Elsevier, vol. 101(1), pages 1-23, March.
    2. Hasanov, Fakhri J. & Liddle, Brantley & Mikayilov, Jeyhun I., 2018. "The impact of international trade on CO2 emissions in oil exporting countries: Territory vs consumption emissions accounting," Energy Economics, Elsevier, vol. 74(C), pages 343-350.
    3. Yanrui Wu & Xunpeng Shi & Fukunari Kimura & Yu Sheng & Youngho Chang & Yanfei Li & Sun Xuegong & Guo Liyan & Zeng Zheng & Daisy Shen & Qing Yang & Kongchheng Poch & Savong Tuy & Sekar Utami Setiastuti, . "Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2011-rpr-17 edited by Yanrui Wu & Xunpeng Shi & Fukunari Kimura, August.
    4. Unknown, 2016. "Energy for Sustainable Development," Conference Proceedings 253270, Guru Arjan Dev Institute of Development Studies (IDSAsr).
    5. Dogan, Eyup & Seker, Fahri, 2016. "The influence of real output, renewable and non-renewable energy, trade and financial development on carbon emissions in the top renewable energy countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1074-1085.
    6. Marcel Kohler, 2013. "CO2 Emissions, Energy Consumption, Income and Foreign Trade: A South African Perspective," Working Papers 356, Economic Research Southern Africa.
    7. Philip Andrews-Speed, . "Energy Market Integration in East Asia: A Regional Public Goods Approach," Chapters,, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Kohler, Marcel, 2013. "CO2 emissions, energy consumption, income and foreign trade: A South African perspective," Energy Policy, Elsevier, vol. 63(C), pages 1042-1050.
    9. Philip ANDREWS-SPEED, 2011. "Energy Market Integration in East Asia: A Regional Public Goods Approach," Working Papers DP-2011-06, Economic Research Institute for ASEAN and East Asia (ERIA).
    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. Shali Wang & Jiaxi Wu & Yunan Peng & Jane Xu & Lisa Leinonen & Yuyu Wang & Zheng Meng, 2022. "Influence of Residential Photovoltaic Promotion Policy on Installation Intention in Typical Regions of China," Sustainability, MDPI, vol. 14(14), pages 1-30, July.
    2. Fanchao Kong & Hongkai Zhang & Xiangyan Meng & Shuai Li & Jia Liu, 2022. "Can the Policy of National Urban Agglomeration Improve Economic and Environmental Gains? Evidence from Quasi-Natural Experiments with 280 Cities in China," IJERPH, MDPI, vol. 19(13), pages 1-18, June.
    3. Feng, Xinhui & Lin, Xinle & Li, Yan & Yang, Jiayu & Yu, Er & Lei, Kaige, 2024. "Spatial association network of carbon emission performance: Formation mechanism and structural characteristics," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    4. Qu, Xueping & Xu, Aidi, 2023. "Ways to promote investments in sustainable energy utilities in the central Asian regional economic cooperation program region," Utilities Policy, Elsevier, vol. 84(C).
    5. Kena Mi & Rulong Zhuang, 2022. "Producer Services Agglomeration and Carbon Emission Reduction—An Empirical Test Based on Panel Data from China," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    6. Chen, Dongxu & Huang, Yin & Tan, Nairong & Hong, Tao & Ma, Tao, 2024. "Cross-regional economic impact of carbon emission regulations: A quantitative spatial equilibrium model for China," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 438-462.
    7. Jinxing Hu & Cuiying Shao & Zhaolong Zhang, 2022. "The Impact of Sustainable Regional Development Policy on Carbon Emissions: Evidence from Yangtze River Delta of China," Energies, MDPI, vol. 15(24), pages 1-25, December.
    8. Mohamed, Mohamed A., 2022. "A relaxed consensus plus innovation based effective negotiation approach for energy cooperation between smart grid and microgrid," Energy, Elsevier, vol. 252(C).
    9. Sunderasan Srinivasan & Prathyusha Asundi, 2024. "Exploiting time zone differences to harmonize electricity supplies: case study of the Central Asian Region," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 29(7), pages 1-13, October.

    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. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    2. Shahbaz, Muhammad & Sinha, Avik, 2019. "Environmental Kuznets Curve for CO2 emission: A survey of empirical literature," MPRA Paper 100257, University Library of Munich, Germany, revised 2019.
    3. Ertugrul, Hasan Murat & Çetin, Murat & Şeker, Fahri & Dogan, Eyüp, 2015. "The impact of trade openness on global carbon dioxide emissions: Evidence from the top ten emitters among developing countries," MPRA Paper 97539, University Library of Munich, Germany, revised 10 Mar 2016.
    4. YuSheng Kong & Rabnawaz Khan, 2019. "To examine environmental pollution by economic growth and their impact in an environmental Kuznets curve (EKC) among developed and developing countries," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-23, March.
    5. Pata, Ugur Korkut, 2018. "The influence of coal and noncarbohydrate energy consumption on CO2 emissions: Revisiting the environmental Kuznets curve hypothesis for Turkey," Energy, Elsevier, vol. 160(C), pages 1115-1123.
    6. Hanen Ragoubi & Zouheir Mighri, 2021. "Spillover effects of trade openness on CO2 emissions in middle‐income countries: A spatial panel data approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 835-877, June.
    7. Huaping Sun & Samuel Attuquaye Clottey & Yong Geng & Kai Fang & Joshua Clifford Kofi Amissah, 2019. "Trade Openness and Carbon Emissions: Evidence from Belt and Road Countries," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    8. Ali Raza & Hongguang Sui & Kittisak Jermsittiparsert & Wioletta Żukiewicz-Sobczak & Pawel Sobczak, 2021. "Trade Liberalization and Environmental Performance Index: Mediation Role of Climate Change Performance and Greenfield Investment," Sustainability, MDPI, vol. 13(17), pages 1-16, August.
    9. Abbasi, Kashif Raza & Hussain, Khadim & Haddad, Akram Masoud & Salman, Asma & Ozturk, Ilhan, 2022. "The role of Financial Development and Technological Innovation towards Sustainable Development in Pakistan: Fresh insights from consumption and territory-based emissions," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    10. Zhang, Linyun & Huang, Feiming & Lu, Lu & Ni, Xinwen, 2021. "Green financial development improving energy efficiency and economic growth: A study of CPEC area in COVID-19 era," IRTG 1792 Discussion Papers 2021-017, Humboldt University of Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series".
    11. Doğan, Buhari & Ferraz, Diogo & Gupta, Monika & Duc Huynh, Toan Luu & Shahzadi, Irum, 2022. "Exploring the effects of import diversification on energy efficiency: Evidence from the OECD economies," Renewable Energy, Elsevier, vol. 189(C), pages 639-650.
    12. Wang, Zhijian & Ben Jebli, Mehdi & Madaleno, Mara & Doğan, Buhari & Shahzad, Umer, 2021. "Does export product quality and renewable energy induce carbon dioxide emissions: Evidence from leading complex and renewable energy economies," Renewable Energy, Elsevier, vol. 171(C), pages 360-370.
    13. Afesorgbor, Sylvanus Kwaku & Demena, Binyam A., 2019. "The Effect of Trade on the Environment: Evidence from Meta-analysis," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 291225, Agricultural and Applied Economics Association.
    14. Sinha, Avik & Shahbaz, Muhammad, 2018. "Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India," Renewable Energy, Elsevier, vol. 119(C), pages 703-711.
    15. Carmen van der Merwe & Martin de Wit, 2021. "An In-Depth Investigation into the Relationship Between Municipal Solid Waste Generation and Economic Growth in the City of Cape Town," Working Papers 07/2021, Stellenbosch University, Department of Economics, revised 2021.
    16. Sharma, Rajesh & Shahbaz, Muhammad & Sinha, Avik & Vo, Xuan Vinh, 2021. "Examining the temporal impact of stock market development on carbon intensity: Evidence from South Asian countries," MPRA Paper 108925, University Library of Munich, Germany, revised 2021.
    17. Waseem Yousaf & Muhammad Sajjad Hussain & Anam Aziz, 2021. "The Role of Green Energy on Reducing the Carbon Emission in ASEAN Countries," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 2(1), pages 34-39, June.
    18. Gopal Gopakumar & Ritika Jaiswal & Mayank Parashar, 2022. "Analysis of the Existence of Environmental Kuznets Curve: Evidence from India," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 177-187.
    19. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    20. Zafar, Muhammad Wasif & Shahbaz, Muhammad & Hou, Fujun & Sinha, Avik, 2018. "¬¬¬¬¬¬From Nonrenewable to Renewable Energy and Its Impact on Economic Growth: Silver Line of Research & Development Expenditures in APEC Countries," MPRA Paper 90611, University Library of Munich, Germany, revised 10 Dec 2018.

    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:eee:enepol:v:147:y:2020:i:c:s0301421520301804. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.