Renewable Energy Investment Promotion in ASEAN: An Environmental, Legal, and Statistical Analysis

Abstract

More than 97% of climate scientists endorse anthropogenic global warming (AGW) theory. Climate change forecasts indicate that the world’s average temperature will rise significantly in the 21st century, potentially leading to abnormal weather patterns and sea level rises. Sea level rise alone could decimate the Southeast Asian region, where nearly 240,000 square kilometers are within 5 meters of sea level. Nations have addressed the issue through intergovernmental agencies, resulting in numerous treaties being ratified since the 1950s, but trends show consistently increasing greenhouse gas emissions (GHGs) – main contributors to climate change related global warming. International legal instruments are typically unenforceable at domestic levels, where governments have not yet made clear and resolute commitments toward mitigating climate change. The Association of Southeast Asian Nations (ASEAN) will launch the ASEAN Economic Community (AEC) on the last day of 2015. AEC is intended to increase trade and development in the region via a common market structure wherein goods, services, and people flow freely between the ten member states. The ASEAN group has been criticized for its reliance upon soft law and voluntary compliance systems, though there is sufficient optimism about AEC that it is reasonable to believe it will create sustainable growth in ASEAN. In order to address potential environmental impacts, and to provide guidance on how member states may prevent and reduce environmentally-harmful behaviors, a multistep research process was executed. Exploratory research was conducted to discover facts and figures about the ASEAN region, its energy economies and policies. Qualitative literature and legal review and analyses were conducted to assess various aspects of energy and environmental planning, inter alia, (1) international and domestic legal framework, (2) environmentally threatening industrial practices or methods, (3) efficiencies and cost ratings of various forms of electricity, and (4) best practices models from countries around the world pertaining to energy production and regulation. Quantitative analysis of statistical data retrieved from international and intergovernmental organizations was conducted. Pearson product-moment correlations were calculated to determine the relationship between growth in gross domestic product (GDP) and emissions. Descriptive statistics were presented in various graphs and charts detailing various trends in ASEAN, including but not limited to (1) energy production and consumption, (2) sources of electricity, (3) carbon emissions, (4) sector-specific GHG emissions, (5) labor market and other economic conditions. Policies from individual nations were assessed alongside parametric and non-parametric data in order to determine how effective enforcement has been where policy exists, or what policies could be implemented to achieve more aggressive environmental goals.