Ways to achieve universal access to sustainable electricity in Southeast Asia

ABSTRACT

This paper proposes a multidimensional dependent variable, namely the Green Power Index, as an appropriate proxy for a sustainable power market and assesses its determinants. For this purpose, we apply the product lifecycle management estimator with the panel Autoregressive Distributive Lag framework for the annual data of 2000–2019 of nine Southeast Asian countries. The findings revealed that Southeast Asian nations consider the following as appropriate accelerators to a sustainable power market in the short and long run economic growth, improved foreign direct investment inflow, increased share of research and development, governance, and privatisation. Conversely, an increase in the price of electricity may slow it down. Empirical findings show that major policy implications include implementing electricity tariff classifications, accelerating economic recovery in the post-COVID-19, boosting bilateral trade and investments and partnerships among Southeast Asian countries and other economic powers in Asia and others.