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Energy Security and Economic Drivers in Lao PDR: Insights on Electricity Consumption and Transition

Nisit Panthamit, Chukiat Chaiboonsri and Guowei Tian

Chapter 8 in Energy Security, Transition, and Economic Growth, 2025, pp 149-171 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter investigates the links between electricity consumption (EC) and key factors—gross domestic product (GDP), population, and foreign direct investment (FDI)—in the Lao People’s Democratic Republic (Lao PDR) from 1998 to 2018, using ARDL-based Bayesian inference. The findings provide empirical evidence of a long-term linear relationship between EC and these economic indicators in Lao PDR. In the short run, these factors have both positive and negative effects on EC, indicating persistent energy insecurity. To achieve long-term energy security, Lao PDR must invest in substantial infrastructure and alternative renewable energy sources.

Keywords: Energy Security; Energy Transition; Just Transition; Economic Growth; Green Growth; Sustainable Development; Renewable Energy; Green Finance; Climate Finance; Carbon Emissions Reduction; Carbon Markets; Energy Efficiency; Environmental Sustainability; Policy Recommendations; Regional Analyses; Country-Level Studies; Energy Intensity; Capital Efficiency; Solar Technology Adoption; Health and Pollution; Southeast Asia; Central Asia; OECD Countries; Developing Economies; Electricity Tariffs; Energy Governance; Fossil Fuel Dependency; Economic Resilience; Agricultural Energy Use; Virtual Power Plants; Energy Policies; Energy Economics; Energy Poverty; Clean Energy Transition; Financial Incentives; Global Energy Markets (search for similar items in EconPapers)
JEL-codes: O13 Q01 Q42 Q43 Q48 Q54 (search for similar items in EconPapers)
Date: 2025
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