Dependence and sustainability: a disaggregated analysis of electricity generation in ASEAN countries

Abstract

Purpose This study aims to explore the diverse sources of electricity generation (coal, natural gas, oil and hydroelectricity) and their respective associations with economic growth and environmental quality. Design/methodology/approach This study uses static panel data analysis with a random effects model for six selected ASEAN countries (Indonesia, Malaysia, Filipina, Thailand, Vietnam and Myanmar) from 1994 to 2014. Findings This study reveals that economic growth in six selected ASEAN countries is enhanced by electricity generation from all sources, while the contribution of electricity production from hydroelectricity remains the largest and strongest. There is no environmental impact of electricity production from hydroelectric, whereas fossil fuel-based electricity production emits carbon dioxide, with coal sources being the largest contributor, followed by natural gas and oil. Practical implications Based on the results, these six ASEAN countries should invest more in hydropower projects, reduce the coal mix in power generation and promote clean coal technology to improve economic efficiency and environmental sustainability. Originality/value To the best of the authors’ knowledge, no research has examined the relationship between electricity production, environmental quality and economic growth in Southeast Asian nations. Therefore, the outcome of this study is expected to provide insightful results to supplement the framing and implementation of national and collective regional strategies for sustainable electricity generation in ASEAN countries.