IDEAS home Printed from https://ideas.repec.org/a/gok/ijdcv1/v6y2016i2p121-135.html
   My bibliography  Save this article

Energy efficiency in the ACI (ASEAN-China-India) countries: is there room for regional policy coordination?

Author

Listed:
  • Gangopadhyay, Partha
  • Shankar, Sriram

Abstract

Energy efficiency and conservation are the major tools in the reduction of environmental impact and ecological footprints of the energy sector, particularly with regard to climate change. Energy efficiency also contributes to reducing external dependence and vulnerabilities of nations to shocks in the energy markets. At the global level, for arresting the global environmental degradation and costs of climate change, energy efficiency is of utmost importance for the emerging economies of Asia since the centre of gravity of the global economy has been continually tilting towards the Northern Indian Ocean close to the geographic proximity of ASEAN-China-India known as ACI nations. With a combined population of 3.15 billion and intraregional annual trade amounting to $1 trillion, the ACI nations are and will remain a major user of energy. These (ACI) nations will be an important piece in the jigsaw puzzle of the sustainability of the global economy, as these nations can pose a serious risk for creating and exaggerating the vulnerabilities of the global economy to climate shocks. In this paper we develop a quantitative technique, for the very first time to the best of our understanding, to examine the impacts of macroeconomic factors on energy efficiency and apply the method to understand the determinants of energy efficiency in the regional economy of the ACI nations. The cross-country dataset is constructed on the basis of secondary data on energy uses and several macroeconomic variables for China, India and nine (9) ASEAN countries over the period of 1989–2010. From the empirical findings we highlight the most appropriate policies for improving energy efficiency in the region that will be the home of one half of the global population by 2030. Although not all public policies seem effective, yet we are able to home in on a specific mix of policies and their coordination for promoting energy efficiency for and sustainability of the ACI nations.

Suggested Citation

  • Gangopadhyay, Partha & Shankar, Sriram, 2016. "Energy efficiency in the ACI (ASEAN-China-India) countries: is there room for regional policy coordination?," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 6(2), pages 121-135.
    • Handle: RePEc:gok:ijdcv1:v:6:y:2016:i:2:p:121-135
    as

    Download full text from publisher

    File URL: http://www.ijdc.org.in/uploads/1/7/5/7/17570463/dec2016art3v1.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jones, Clifton T, 1994. "Accounting for technical progress in aggregate energy demand," Energy Economics, Elsevier, vol. 16(4), pages 245-252, October.
    2. Ang, B. W., 1999. "Is the energy intensity a less useful indicator than the carbon factor in the study of climate change?," Energy Policy, Elsevier, vol. 27(15), pages 943-946, December.
    3. Zhou, P. & Ang, B.W., 2008. "Decomposition of aggregate CO2 emissions: A production-theoretical approach," Energy Economics, Elsevier, vol. 30(3), pages 1054-1067, May.
    4. Rudolf Wolffram, 1971. "Positivistic Measures of Aggregate Supply Elasticities: Some New Approaches—Some Critical Notes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(2), pages 356-359.
    5. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    6. Polachek, Solomon W. & Robst, John, 1998. "Employee labor market information: comparing direct world of work measures of workers' knowledge to stochastic frontier estimates," Labour Economics, Elsevier, vol. 5(2), pages 231-242, June.
    7. Gilbert E. Metcalf, 2008. "An Empirical Analysis of Energy Intensity and Its Determinants at the State Level," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-26.
    8. Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-652, Special I.
    9. Gangopadhyay, Partha & Van Long, Ngo & Tran-Nam, Binh & Y Wan Jr, Henry, 2011. "Introduction," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 1(3), pages 225-230.
    10. Dermot Gately & Hiliard G. Huntington, 2002. "The Asymmetric Effects of Changes in Price and Income on Energy and Oil Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 19-55.
    11. Roca, Jordi & Alcantara, Vicent, 2001. "Energy intensity, CO2 emissions and the environmental Kuznets curve. The Spanish case," Energy Policy, Elsevier, vol. 29(7), pages 553-556, June.
    12. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    13. Philip R. Vande Kamp & Harry M. Kaiser, 1999. "Irreversibility in Advertising-Demand Response Functions: An Application to Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 385-396.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Energy efficiency; stochastic frontier analysis; interest-group politics; reputational dynamics; mixed-strategy equilibrium.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gok:ijdcv1:v:6:y:2016:i:2:p:121-135. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/gipepin.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.