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A comparative analysis of renewable electricity support mechanisms for Southeast Asia

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  • Sovacool, Benjamin K.

Abstract

This study evaluates the applicability of eight renewable electricity policy mechanisms for Southeast Asian electricity markets. It begins by describing the methodology behind 90 research interviews of stakeholders in the electricity industry. It then outlines four justifications given by respondents for government intervention to support renewables in Southeast Asia: unpriced negative externalities, counteracting subsidies for conventional energy sources, the public goods aspect of renewable energy, and the presence of non-technical barriers. The article develops an analytical framework to evaluate renewable portfolio standards, green power programs, public research and development expenditures, systems benefits charges, investment tax credits, production tax credits, tendering, and feed-in tariffs in Southeast Asia. It assesses each of these mechanisms according to the criteria of efficacy, cost effectiveness, dynamic efficiency, equity, and fiscal responsibility. The study concludes that one mechanism, feed-in tariffs, is both the most preferred by respondents and the only one that meets all criteria.

Suggested Citation

  • Sovacool, Benjamin K., 2010. "A comparative analysis of renewable electricity support mechanisms for Southeast Asia," Energy, Elsevier, vol. 35(4), pages 1779-1793.
  • Handle: RePEc:eee:energy:v:35:y:2010:i:4:p:1779-1793
    DOI: 10.1016/j.energy.2009.12.030
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    References listed on IDEAS

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    Cited by:

    1. Casper Agaton, 2017. "Coal, Renewable, or Nuclear? A Real Options Approach to Energy Investments in the Philippines," International Journal of Sustainable Energy and Environmental Research, Conscientia Beam, vol. 6(2), pages 50-62, 06-2017.
    2. Friebe, Christian A. & von Flotow, Paschen & Täube, Florian A., 2014. "Exploring technology diffusion in emerging markets – the role of public policy for wind energy," Energy Policy, Elsevier, vol. 70(C), pages 217-226.
    3. Zhao, Xiaoli & Li, Shujie & Zhang, Sufang & Yang, Rui & Liu, Suwei, 2016. "The effectiveness of China's wind power policy: An empirical analysis," Energy Policy, Elsevier, vol. 95(C), pages 269-279.
    4. Sovacool, Benjamin K. & Drupady, Ira Martina, 2011. "Examining the Small Renewable Energy Power (SREP) Program in Malaysia," Energy Policy, Elsevier, vol. 39(11), pages 7244-7256.
    5. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    6. Linnerud, Kristin & Holden, Erling, 2015. "Investment barriers under a renewable-electricity support scheme: Differences across investor types," Energy, Elsevier, vol. 87(C), pages 699-709.
    7. Maung Aung Myoe, 2015. "Myanmar’s China Policy since 2011: Determinants and Directions," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 34(2), pages 21-54.
    8. repec:eee:enepol:v:106:y:2017:i:c:p:525-535 is not listed on IDEAS
    9. repec:eee:enepol:v:113:y:2018:i:c:p:239-248 is not listed on IDEAS
    10. Dulal, Hari Bansha & Shah, Kalim U. & Sapkota, Chandan & Uma, Gengaiah & Kandel, Bibek R., 2013. "Renewable energy diffusion in Asia: Can it happen without government support?," Energy Policy, Elsevier, vol. 59(C), pages 301-311.
    11. repec:eee:appene:v:197:y:2017:i:c:p:29-39 is not listed on IDEAS
    12. Sovacool, Benjamin K. & Drupady, Ira Martina, 2011. "Summoning earth and fire: The energy development implications of Grameen Shakti (GS) in Bangladesh," Energy, Elsevier, vol. 36(7), pages 4445-4459.
    13. Gottschamer, L. & Zhang, Q., 2016. "Interactions of factors impacting implementation and sustainability of renewable energy sourced electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 164-174.
    14. Talaei, Alireza & Ahadi, Mohammad Sadegh & Maghsoudy, Soroush, 2014. "Climate friendly technology transfer in the energy sector: A case study of Iran," Energy Policy, Elsevier, vol. 64(C), pages 349-363.
    15. Sarraf, M. & Rismanchi, B. & Saidur, R. & Ping, H.W. & Rahim, N.A., 2013. "Renewable energy policies for sustainable development in Cambodia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 223-229.
    16. Sovacool, Benjamin K. & Bulan, L.C., 2011. "Behind an ambitious megaproject in Asia: The history and implications of the Bakun hydroelectric dam in Borneo," Energy Policy, Elsevier, vol. 39(9), pages 4842-4859, September.
    17. Poocharoen, Ora-orn & Sovacool, Benjamin K., 2012. "Exploring the challenges of energy and resources network governance," Energy Policy, Elsevier, vol. 42(C), pages 409-418.
    18. Bento, Nuno & Fontes, Margarida, 2015. "The construction of a new technological innovation system in a follower country: Wind energy in Portugal," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 197-210.
    19. Matthew S. Winters & Matthew Cawvey, 2015. "Governance Obstacles to Geothermal Energy Development in Indonesia," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 34(1), pages 27-56.
    20. repec:eee:renene:v:116:y:2018:i:pa:p:659-668 is not listed on IDEAS
    21. Mukherjee, Ishani & Sovacool, Benjamin K., 2012. "Sustainability principles of the Asian Development Bank's (ADB's) energy policy: An opportunity for greater future synergies," Renewable Energy, Elsevier, vol. 48(C), pages 173-182.
    22. Pablo Río, 2014. "On evaluating success in complex policy mixes: the case of renewable energy support schemes," Policy Sciences, Springer;Society of Policy Sciences, vol. 47(3), pages 267-287, September.
    23. Ren, Jingzheng & Dong, Liang & Sun, Lu & Evan Goodsite, Michael & Dong, Lichun & Luo, Xiao & Sovacool, Benjamin K., 2015. "“Supply push” or “demand pull?”: Strategic recommendations for the responsible development of biofuel in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 382-392.

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