TY - JOUR
T1 - Energy insecurity in the asean region
T2 - The implications of energy policy reform
AU - Resosudarmo, Budy P.
AU - Nurdianto, Ditya A.
AU - Effendi, Yuventus
N1 - Publisher Copyright:
© 2020 World Scientific Publishing Company.
PY - 2021/3
Y1 - 2021/3
N2 - 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 CO 2 emissions. In terms of welfare distribution, this policy appears to be progressive in nature.
AB - 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 CO 2 emissions. In terms of welfare distribution, this policy appears to be progressive in nature.
KW - ASEAN economy
KW - Energy security
KW - computable general equilibrium model
KW - energy economics
UR - http://www.scopus.com/inward/record.url?scp=85096490623&partnerID=8YFLogxK
U2 - 10.1142/S0217590820430079
DO - 10.1142/S0217590820430079
M3 - Article
SN - 0217-5908
VL - 66
SP - 345
EP - 368
JO - Singapore Economic Review
JF - Singapore Economic Review
IS - 2
ER -