Investing on Low-Carbon Energy Systems: Implications for Regional Economic Cooperation

498 Pages·2016·13.91 MB·English

by  Venkatachalam Anbumozhi, Kaliappa Kalirajan, Fukunari Kimura, Xianbin Yao (eds.)

Venkatachalam Anbumozhi
Kaliappa Kalirajan · Fukunari Kimura
Xianbin Yao Editors
Investing in
Low-Carbon
Energy Systems
Implications for Regional Economic
Cooperation
Investing in Low-Carbon Energy Systems
Venkatachalam Anbumozhi
Kaliappa Kalirajan Fukunari Kimura
(cid:129)
Xianbin Yao
Editors
Investing in Low-Carbon
Energy Systems
Implications for Regional Economic
Cooperation
123
Editors
Venkatachalam Anbumozhi FukunariKimura
Economic ResearchInstitute for ASEAN Economic ResearchInstitute for ASEAN
andEastAsia (ERIA) andEastAsia (ERIA)
Jakarta Jakarta
Indonesia Indonesia
Kaliappa Kalirajan and
Crawford Schoolof Public Policy
Australian National University Faculty of Economics
Canberra KeioUniversity
Australia Tokyo
Japan
XianbinYao
AsianDevelopment Bank
Manila
Philippines
ISBN978-981-10-0760-6 ISBN978-981-10-0761-3 (eBook)
DOI 10.1007/978-981-10-0761-3
LibraryofCongressControlNumber:2016933243
©SpringerScience+BusinessMediaSingapore2016
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to the book frontmatter is available at
DOI 10.1007/978-981-10-0761-3_17.
Foreword
EmergingeconomiesofAsiahaveanessentialroletoplayinpromotingtheglobal
move towards energy security, economic growth, and sustainable development.
Although their economic activities are circumscribed by developmental prefer-
ences, equity concerns, and industrial competiveness, they are important agents in
implementing several measures which would mitigate global environmental chal-
lenges like climate change. The way in which the emerging economies manage
their future energy systems and economic integration activities are critically
important,astheglobalsocietyincreasinglyexpects.EastAsiaSummitregionhave
begunrespondingtothischallengebyintheformofintendednationallydetermined
contributions and comprehensive economic partnerships. However, the observed
effects of these commitments are often met with many regulatory barriers, tech-
nologicalhurdles,financialdeficiencies,andlackofinternationalcooperation,some
of which are very specific to the region.
At the same time, there is much scope for the regional cooperation—countries
working together through market and market mechanisms—to complement and
augmentinvestmentinlowcarbonenergysystems,andthusprovideacontribution
to achieving energy security goals, and long-term reductions in carbon emissions.
However, policy approaches to understand the synergies differ radically across the
region and there is a need for mutual learning.
This book is based on papers presented and discussed for the ERIA project on
Low Carbon Energy Systems: Implication for Regional Cooperation and
Integration. This project aimed
(cid:129) toidentifyandelaborateonindividualenergypolicyactionsinmajoreconomies
based on scenario analysis that is necessary to create low carbon economy at a
scale required; and
(cid:129) to review regional economic integration activities in the region and beyond,
which facilitate such actions with suggestions for any improvements.
Thisprojectbroughttogetherleadingenergyandeconomicexpertsfromregion,
assessed country approaches, generated common insights and understanding and
vii
viii Foreword
weighed policy implications, and identified action plans, all of which are captured
in this book.
This book is being published as part of ERIA’s effort to produce knowledge
products that can be used to promote sustainable development, one of the three
prioritythemes.Iamconfidentthatthisbookwillcontributetopolicydevelopment
and academic understanding in an area where new insights are urgently needed.
I hope this book will also help countries in ASEAN and East Asia to set up and
implement robust policy measures and sustainably manage their critical energy
resources for the long-term development of their people.
August 2016 Hidetoshi Nishimura
President of ERIA
Contents
1 Serendipity of Low Carbon Energy System and the Scope
of Regional Cooperation. ..... .... .... .... .... .... ..... .... 1
Venkatachalam Anbumozhi and Xianbin Yao
Part I An Evolutionary Analysis of Low-Carbon Energy Systems
and Green Growth
2 Low Carbon Energy Systems in China: Visioning Regional
Cooperation Through the Belt and Road .... .... .... ..... .... 31
Zhu Yuezhong, Tian Zhiyu, Liu Jianguo, Chao Feng and Liang Qi
3 A Multi-level Experience of Designing Low-Carbon Energy
Systems in India ... .... ..... .... .... .... .... .... ..... .... 55
Ritu Mathur and Malancha Chakrabarty
4 Toward a Low-Carbon Economy for Indonesia:
Aspirations, Actions and Scenarios . .... .... .... .... ..... .... 79
Arianto A. Patunru and Arief Anshory Yusuf
5 Greening the Economy with Low Carbon Energy System:
Developments, Policy Initiatives and Lessons from Malaysia.. .... 111
V.G.R. Chandran Govindaraju
6 On the Dynamics of Low Carbon Green Growth in Thailand. .... 131
Qwanruedee Chotichanathawewong
7 Functional Characteristics of Low Carbon Energy Systems
and Need for Regional Cooperation in Vietnam... .... ..... .... 185
Pham Khanh Toan, Nguyen Duc Cuong and Tran Thi Thu Huong
8 Low Carbon Energy Systems and Indicator Framework
for Cambodia, Lao PDR and Myanmar . .... .... .... ..... .... 215
Sivanappan Kumar
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x Contents
Part II Transition Experiments and Innovation in Regional
Cooperation
9 Energy Policy and Regional Cooperation: Australia’s
Contribution to Low Carbon Green Growth Initiatives. ..... .... 251
Gaminiratne Wijesekere and Arif Syed
10 Aiding the Transition: Innovations with Japan’s Bilateral
Offset Mechanisms.. .... ..... .... .... .... .... .... ..... .... 281
Akira Ogihara and Venkatachalam Anbumozhi
11 Regional Cooperation and Asia’s Low Carbon Economy
Transition: the Case of New Zealand.... .... .... .... ..... .... 309
Douglas Hill
12 Low Carbon Energy Transition in EU: Lessons from Economic,
Institutional and Management Approaches... .... .... ..... .... 327
Matthias Helble
Part III Regional Economic Integration and Implications
for Low-Carbon Green Growth
13 The Influence of Regional Cooperation on Export Potential
of the APEC 54 List of RCEP Countries. .... .... .... ..... .... 359
Kaliappa Kalirajan
14 Barriers and Options for Carbon Market Integration .. ..... .... 391
Lingshui Mo and Xuedu Lu
15 Domestic and International Finance in a Regional Perspective .... 435
Tomonori Sudo
Part IV Conclusion
16 The Hard Choices that Asia Must Make. .... .... .... ..... .... 465
KaliappaKalirajan,VenkatachalamAnbumozhiandFukunariKimura
Erratum to: Investing in Low-Carbon Energy Systems. .... ..... .... E1
Venkatachalam Anbumozhi, Kaliappa Kalirajan, Fukunari Kimura
and Xianbin Yao
Appendix 1 ... .... .... .... ..... .... .... .... .... .... ..... .... 471
Appendix 2 ... .... .... .... ..... .... .... .... .... .... ..... .... 487
Appendix 3 ... .... .... .... ..... .... .... .... .... .... ..... .... 491
Index .... .... .... .... .... ..... .... .... .... .... .... ..... .... 495
Editors and Contributors
About the Editors
Venkatachalam Anbumozhi is a Senior Economist at the Economic Research
Institute for ASEAN and East Asia (ERIA), Indonesia. His previous positions
include Capacity Building Specialist and Senior Fellow at Asian Development
Bank Institute and Assistant Professor atthe University of Tokyo. Adistinguished
fellow of Asia Pacific Rim University (APRU) Forum on Development and
Environment, he also advised ADB, JICA, JBIC, UNESCAP projects on sustain-
able development. He has published several books, authored numerous research
articles, and produced many project reports on natural resource management, cli-
matefriendlyinfrastructuredesign,andprivatesectorparticipationingreengrowth.
AnbumozhiwasinvitedasamemberoftheAPECExpertPanelonGreenClimate
Finance and the ASEAN Panel for promoting climate-resilient growth. He has
taughtresourcemanagement,internationalcooperation,anddevelopmentfinanceat
the University of Tokyo and has speaking engagements at some of the leading
international organizations. He obtained his Ph.D. from the University of Tokyo.
KaliappaKalirajan isaProfessorintheCrawfordSchoolofPublicPolicyatthe
Australian National University, Australia. He is also a Visiting Professor at the
MadrasSchoolofEconomics,IndiaandInternationalUniversityofJapan.Hisareas
of major interest include macroeconomic and trade policies, sources of growth,
regional cooperation in low carbon energy systems, and technology issues in
emerging Asian countries. He has 150 publications in those areas in refereed
academicandpolicyjournals.Hehasauthoredandedited15books.Heiscurrently
serving on the editorial board of the following journals: Journal of Asian
Economics; Agricultural Economics; Australian Journal of Agricultural and
Resource Economics; The Developing Economies; The Journal of Applied
Economic Research; Journal of Social and Economic Development; and Asia and
the Pacific Policies Studies. He has been a consultant to different national and
international organizations from time to time.
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