Research Database

Singapore is an island city-state. It lacks conventional energy resources and is alternative energy disadvantaged. In the past decade (2000-2010), its energy-related carbon emissions increased from 37.8 to 44.4 million tonnes of CO2. This paper analyses the city state’s carbon emissions from the demand perspective using the input-output (I-O) method and investigate the drivers of emission changes using structural decomposition analysis (SDA). It is the first comprehensive analysis of Singapore’s emissions using the I-O framework. The results obtained show that exports accounted for nearly two-thirds of its total emissions and growth in its emissions in the last decade was largely export-driven. Emissions increased as export-oriented industries and export volume expanded. Fuel switching and energy efficiency, however, helped to lower growth in emissions. Besides exports, household-related emissions accounted for about a quarter of Singapore’s total emissions. The emissions related to different household groups remained fairly stable as increases in embodied (indirect) emissions were offset by decreases in direct emissions. The high-income household group registered the largest increase in direct emissions, while the middle-income household group registered the largest increase in embodied emissions. The policy implications of our findings are discussed.

The efficient utilization of clean energy resources to meet increasing electricity demand is imposing the integration of the electricity market and the construction of secure transmission mechanisms around the globe. Accordingly, the Association of Southeast Asian Nations (ASEAN) is integrating its large geographical power transmission infrastructure via the ASEAN power grid (APG). This study extensively reviews the energy resources (i.e., fossil fuels and renewables), the current utilization, and the future projection for ASEAN. Electricity export-import scenarios and renewable generation based transmission expansion planning practices in ASEAN will also be critically reviewed in this work. Additionally, the major barriers and technical challenges for establishing an ASEAN grid will be briefly analyzed. Finally, this work suggests possible techniques that help expedite the renewable power generations to overcome the limitations associated with the establishment of the APG, as well as future research direction in enhancing the utilization of APG for ASEAN.

There is an increasing interest in investigating the environmental Kuznets curve (EKC) hypothesis because it suggests the existence of a turning point in the economy that will lead to a sustainable development path. Although many studies have focused on the EKC, only a few empirical studies have focused on analyzing the EKC with specific reference to Indonesia, and none of them have examined the potential of renewable energy sources within the EKC framework. This study attempts to estimate the EKC in the case of Indonesia for the period of 1971–2010 by considering the role of renewable energy in electricity production, using the autoregressive distributed lag (ARDL) approach to cointegration as the estimation method. We found an inverted U-shaped EKC relationship between economic growth and CO2 emissions in the long run. The estimated turning point was found to be 7729 USD per capita, which lies outside of our sample period. The beneficial impacts of renewable energy on CO2 emission reduction are observable both in the short run and in the long run. Our work has important implications both for policymakers and for the future development of renewable energy in Indonesia.

We empirically examine the existence of an oil curse in the finance–growth nexus in Malaysia. We provide new insights into the oil curse phenomenon in Malaysia that challenges the conventional argument that Malaysia is a counter-example of an oil curse country. We do not find any significant evidence of direct effects of financial development on TFP. However, there are direct and positive effects on the level of investment due to financial development and oil dependence. While we do not find statistical evidence of a direct negative impact of oil rent on economic growth, our results reveal that the symptoms of an oil curse exist. Specifically, we find that oil rent has a weak, indirect, impact on the finance–growth nexus through the quantitative channel or investment quantity. The policy implications of our findings are that the financial sector should be more involved in productive investment activities that can strengthen its role in economic growth and that policymakers should reduce dependence on oil and promote economic diversification.

This paper assesses competing outlooks for energy mix in the Association of Southeast Asian Nations (ASEAN), highlighting the paradox of its fossil fuel-dominated outlooks when contrasted with its aspirations to move toward a green energy mix, and reviews green energy strategies using the strengths, weaknesses, opportunities, and threats (SWOT) analysis method. The paper argues that despite the looming brown outlooks due to the expected surge of coal, the ASEAN region has many advantages in providing cleaner energy for its green vision. However, reduction of CO2 emissions has not been explicitly set in the region’s policy agenda and thus green energy potential is underdeveloped. To achieve a greener energy mix, ASEAN needs to make further efforts such as cleaner use and removal of subsidies of fossil fuels, promotion of renewables and energy efficiency, regional market integration and connectivity, and execution of existing plans by nations. Ultimately, each of these strategies will require sustained leadership, political determination, and concrete actions from stakeholders, in particular, national governments across the region.

This study examines whether policies to promote renewable electricity generation are likely to be effective by applying panel unit root and stationarity tests to time series data on renewable electricity generation for 115 countries over the period 1980-2008. We find that for the panel as a whole, and almost three quarters of the individual countries, renewable electricity generation is characterized by a unit root. This result implies that policies to promote renewable electricity generation, such as renewable portfolio standards, which result in annual increases in renewable energy and, as such, which represent permanent positive shocks to the long-run growth path of renewable electricity generation, will be more effective in increasing renewable electricity generation than policies with a pre-specified time horizon.