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Development of renewable electricity in ASEAN countries: socio-economic and environmental impacts

Author

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  • Yuventus Effendi

    (Australian National University
    Indonesian Ministry of Finance)

  • Budy P. Resosudarmo

    (Australian National University)

Abstract

There has been a significant increase in electricity consumption per capita amongst ASEAN Countries in the last two decades. This consumption will most likely continue to increase in the future, indicating the importance of a reliable provision for electricity supplies in the region. ASEAN Countries, however, are concerned that continuing to utilise fossil fuels to generate electricity will increase their carbon emission contributions. Therefore, ASEAN Countries are considering to invest in renewable energy for the generation of electricity. However, few studies have been conducted on the socio-economic and environmental impacts of renewable electricity development in this region. Using an inter-country social accounting matrix analysis for the East Asia Region, this paper compares the socio-economic and environmental impacts of increasing electricity generated from fossil fuels with electricity generated from renewable resources, namely wind, hydro and solar. The results indicate developing renewable electricity can lead to a higher GDP, higher positive spillover to non-energy sectors and lower carbon emissions than developing electricity based on fossil fuels. However, the incidence of poverty in several ASEAN Countries developing renewable electricity can be relatively higher than if they continue utilising fossil fuel electricity.

Suggested Citation

  • Yuventus Effendi & Budy P. Resosudarmo, 2022. "Development of renewable electricity in ASEAN countries: socio-economic and environmental impacts," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 247-266, February.
    • Handle: RePEc:spr:apjors:v:6:y:2022:i:1:d:10.1007_s41685-021-00206-7
    DOI: 10.1007/s41685-021-00206-7
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    More about this item

    Keywords

    Renewable electricity; Carbon emissions; Inter-country social accounting matrix; ASEAN;
    All these keywords.

    JEL classification:

    • E16 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Social Accounting Matrix
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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