Asian energy and environmental policy: Promoting growth while preserving the environment

Abstract

Asia has experienced spectacular economic growth over the past two decades. However, this economic progress has come at a high cost. It has led to unprecedented environmental consequences. So this region needs to shift the conventional pattern of “develop first and then treat the pollution” to a trajectory of sustainable development. To that end, this paper examines a variety of policy responses, at national, regional and international levels, to deal with growing concerns about the environmental challenges in Asia. In the context of national responses, special attention is paid to the following issues: coordination between the central and local governments, market-based environmental instruments and industrial policies, tougher emissions standards for mobile and stationary sources and fuel quality, policies to promote energy efficiency and the use of clean energy and biofuels, the integration of environmental policies with economic and sectoral policies, and engagement of the private sector through e.g., ecolabelling, green government procurement, corporate ratings and disclosure programs, and drawing the support of financial institutions to promote improved corporate environmental performance. The paper concludes that having the right policy mix, coupled with strengthened cooperation at national, local and regional levels, will ensure continuing economic growth in the region without compromising its limited ecological-carrying capacity and environmental quality.