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Abul Al-Amin (), Md. Sujahangir Kabir Sarkar, Adeel Ahmed and Brent Doberstein
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Md. Sujahangir Kabir Sarkar: Institute of Energy Policy and Research (IEPRe), Universiti Tenaga Nasional (UNITEN), Jalan Ikram-Uniten, 43000 Kajang, Malaysia§Department of Economics and Sociology, Patuakhali Science and Technology University, Dumki 8602, Patuakhali, Bangladesh
Adeel Ahmed: #x2020;Department of Geography and Environmental Management, University of Waterloo, Canada
Brent Doberstein: #x2020;Department of Geography and Environmental Management, University of Waterloo, Canada

Climate Change Economics (CCE), 2020, vol. 11, issue 02, 1-21

Abstract: Global warming is becoming increasingly evident as greenhouse gas emissions increase worldwide and affect the environment, health and economy. Many Southeast Asian countries face this reality and hence they are concerned about setting and achieving an effective emission reduction strategy. As such, this study analyzes and compares emission reduction targets on selected Southeast Asian countries, including Malaysia, Indonesia and Thailand, by using a long-run Regional Dynamic Integrated Model of the Climate and Economy (RdICME). This study considers the comparative outcomes of BAU (Business as Usual: base case) and INDC (Intended Nationally Determined Contributions) scenarios for the 40-year period from 2010 to 2050. According to BAU scenario, carbon emissions are projected to gradually increase in all countries; however, if Malaysia, Indonesia and Thailand apply their INDC targets as agreed upon in the 2015 Paris Agreement, all three countries will experience significant emissions reductions after 2030. Specifically, by 2050, total emissions will be reduced by 33.88%, 42.50% and 41.68% in Malaysia, Indonesia and Thailand, respectively, if the countries implement their INDCs. According to the INDC targets, all three countries will experience a net reduction of per capita emission intensity by 2030 and onwards; however, Malaysia is projected to face lower marginal damage costs whereas Indonesia and Thailand will face higher marginal damage costs for 2010–2050. This study also finds that the amount of planned investment for INDC emissions reduction is currently insufficient to achieve planned targets. The findings from this study would help country-specific policymakers to oversee the likely gaps to be fulfilled within 2030–2050.

Keywords: Emission reduction; INDC; Malaysia; Indonesia and Thailand; policy (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1142/S2010007820500116

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