ENERGY INSECURITY IN THE ASEAN REGION: THE IMPLICATIONS OF ENERGY POLICY REFORM

Budy Resosudarmo, Ditya A. Nurdianto and Yuventus Effendi
Additional contact information
Ditya A. Nurdianto: #x2020;Indonesian Ministry of Foreign Affairs, Indonesia

The Singapore Economic Review (SER), 2021, vol. 66, issue 02, 345-368

Abstract: Energy insecurity has become an alarming issue among ASEAN countries. One proposal to overcome this energy insecurity is to integrate energy markets among ASEAN countries. In order to do this integration, a major energy policy reform, particularly the elimination of energy subsidy policies, is needed. The main goal of this paper, hence, is to analyze the impact of an energy subsidy reduction policy in ASEAN, particularly in terms of economic growth, environmental improvement and welfare distribution. To achieve this goal, this paper uses a multi-country computable general equilibrium (CGE) for Inter-Regional System Analysis for ASEAN (IRSA-ASEAN) to conduct the analysis. This paper finds that countries in which energy subsidies significantly exist, i.e., Indonesia and Malaysia, stand to gain much from eliminating these subsidies. Gross domestic product (GDP) is likely to increase, with the added benefit of reduced CO2 emissions. In terms of welfare distribution, this policy appears to be progressive in nature.

Keywords: Energy security; energy economics; computable general equilibrium model; ASEAN economy (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590820430079
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:serxxx:v:66:y:2021:i:02:n:s0217590820430079

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590820430079

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().