Globalization in Reducing Energy Intensity: Evidence from ASEAN Countries
Article Sidebar
Main Article Content
บทคัดย่อ
This paper investigates the effects of globalization on energy intensity in the ASEAN region from 2010-2020. Employing the panel data regression analysis to analyze the secondary dataset from the World Bank and Worldwide Governance Indicators, the results found that globalization, precisely through trade openness and FDI, significantly affects energy intensity in the ASEAN region. This suggests that heightened trade openness is linked to lower energy intensity; when a country becomes more engaged in international trade, its energy intensity decreases. Globalization considerably encourages adopting energy-efficient practices, enabling businesses to minimize operational costs. Meanwhile, FDI helps enhance operational efficiency, optimize energy usage in production processes, and reduce energy intensity. This paper contends that policies emphasizing the importance of globalization, particularly in promoting trade openness and FDI, are essential for facilitating a regional energy transition. ASEAN member states are advised to boost trade openness, liberalization, and policies related to FDI by reducing barriers and simplifying customs procedures. Enforcing stringent environmental standards for industries, especially those attracting FDI, will guarantee adherence to sustainable energy practices, resulting in increased energy efficiency and lower energy intensity across various business domains in the region.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
เอกสารอ้างอิง
Aalto, P. (2014). Institutions in European and Asian energy markets: A methodological overview. Energy Policy, 74(2014), 4-15. Retrieved from https://doi.org/https://doi.org/10.1016/j.enpol.2014.08.022
Agostino, M., Tommaso, M. R. D., Nifo, A., Rubini, L., & Trivieri, F. (2020). Institutional quality and firms’ productivity in European regions. Regional Studies, 54(9), 1275-1288.
Andrews-Speed, P. (2016). Applying institutional theory to the low-carbon energy transition. Energy Research & Social Science, 13(2016), 216-225. Retrieved from https://doi.org/https://doi.org/10.1016/j.erss.2015.12.011
ASEAN Centre for Energy and GIZ. (2023). The 7th ASEAN Energy Outlook. Retrieved from https://asean.org/book/the-7th-asean-energy-outlook-2020-2050/
Aziz, N., Hossain, B., & Mowlah, I. (2018). Does the quality of political institutions affect intra-industry trade within trade blocs? The ASEAN perspective. Applied Economics, 50(33), 3560-3574. Retrieved from https://doi.org/10.1080/00036846.2018.1430336
Baddeley, M. (2006). Convergence or Divergence? The Impacts of Globalisation on Growth and Inequality in Less Developed Countries. International Review of Applied Economics, 20(3), 391-410. Retrieved from https://doi.org/10.1080/02692170600736250
Bernhofen, D. M., & Brown, J. C. (2005). An Empirical Assessment of the Comparative Advantage Gains from Trade: Evidence from Japan. American Economic Review, 95(1), 208-225. Retrieved from https://doi.org/10.1257/0002828053828491
Bradford, S. C., Das, S., & Saha, A. (2022). Country size, per-capita income, and comparative advantage: services versus manufacturing. G. University Library of Munich. Retrieved from https://ideas.repec.org/p/pra/mprapa/115091.html
Briggs, K. (2013). Institutional quality as a barrier to trade. Applied Economics Letters, 20(3), 1453-1458.
Buracom, P. (2014a). ASEAN Economic Performance, Institutional Effectiveness, and Foreign Direct Investment. Asian Affairs: An American Review, 14(3), 108-126.
Buracom, P. (2014b). ASEAN Economic Performance, Institutional Effectiveness, and Foreign Direct Investment. Asian Affairs: An American Review, 41(3), 108-126. Retrieved from https://doi.org/10.1080/00927678.2014.936801
Buracom, P. (2021). Globalization, political institutions, and social spending on human capital upgrading in ASEAN. Asian Politics & Policy, 13(3), 385-407. Retrieved from https://doi.org/https://doi.org/10.1111/aspp.12585
Chen, L., & Lombaerde, P. D. (2019). ASEAN between globalization and regionalization. Asia Pacific Business Review, 25(5), 729-750. Retrieved from https://doi.org/10.1080/13602381.2019.1652982
Chien, F., Vu, T. L., Hien Phan, T. T., Van Nguyen, S., Viet Anh, N. H., & Ngo, T. Q. (2023). Zero-carbon energy transition in ASEAN countries: The role of carbon finance, carbon taxes, and sustainable energy technologies. Renewable Energy, 212(2013), 561-569. Retrieved from https://doi.org/https://doi.org/10.1016/j.renene.2023.04.116
Cook, P., & Kirkpatrick, C. (1997). Globalization, Regionalization and Third World Development. Regional Studies, 31(1), 55-66. Retrieved from https://doi.org/10.1080/00343409750134782
Cui, W. (2017). Social Trust, Institution, and Economic Growth: Evidence from China. Emerging Markets Finance and Trade, 53(6), 1243-1261.
Deloitte. (2023). The pathway toward transformation of the energy sector. Retrieved from https://www2.deloitte.com/nl/nl/pages/energy-resources-industrials/articles/future-of-energy-faq.html
Demir, I., Canakci, M., & Egri, T. (2020). Globalization and Economic Growth. In W. Leal Filho, A. M. Azul, L. Brandli, A. Lange Salvia, & T. Wall (Eds.), Decent Work and Economic Growth (pp. 1-11). Springer International Publishing. Retrieved from https://doi.org/10.1007/978-3-319-71058-7_90-1
Dizon, D. M., Gulapa, A. L., & Palas, V. C. (2021). Analysis on the Impact of Economic Globalization on Human Development and Economic Growth in the ASEAN-4. Journal of Economics, Finance and Accounting Studies. 3(2), 249-268.
Drewello, H. (2022). Towards a Theory of Local Energy Transition. Sustainability, 14(18), 1-20.
Eriksen, S. S. (2002). Globalisation and Development. Forum for Development Studies, 29(2), 423-424. Retrieved from https://doi.org/10.1080/08039410.2002.9666219
Falahaty, M., & Law, S. H. (2012). The Effect of Globalization on Financial Development in the MENA Region. Transition Studies Review, 19, 205-223.
Faundez, J. (2016). Douglass North’s Theory of Institutions: Lessons for Law and Development. Hague Journal on the Rule of Law, 8(2016), 373–419.
Filgueiras, F., & Lui, L. (2023). Designing data governance in Brazil: an institutional analysis. Policy Design and Practice, 6(1), 41-56. Retrieved from https://doi.org/10.1080/25741292.2022.2065065
Friedman, T. L. (2005). The World Is Flat: A Brief History of the Twenty-first Century. Farrar Straus & Giroux.
Fukumi, A., & Nishijima, S. (2010). Institutional quality and foreign direct investment in Latin America and the Caribbean. Applied Economics, 42(14), 1857-1864. Retrieved from https://doi.org/10.1080/00036840701748979
Garrett, G. (2000). The Causes of Globalization. Comparative Political Studies, 33(6-7), 941-991. Retrieved from https://doi.org/10.1177/001041400003300610
Gozgor, G., Mahalik, M. K., Demir, E., & Padhan, H. (2020). The impact of economic globalization on renewable energy in the OECD countries. Energy Policy, 139, 111365. Retrieved from https://doi.org/https://doi.org/10.1016/j.enpol.2020.111365
Grabowski, R., & Self, S. (2012). Determinants of governance institutional quality in sub-saharan africa. Applied Economics, 53(18), 2066–2079.
Hayat, A. (2019a). Foreign direct investments, institutional quality, and economic growth. The Journal of International Trade & Economic Development, 28(5), 561-579. Retrieved from https://doi.org/10.1080/09638199.2018.1564064
Hayat, A. (2019b). Foreign direct investments, institutional quality, and economic growth. The Journal of International Trade & Economic, 28(5), 561-579.
Hollingsworth, J. R. (2000). Doing institutional analysis: implications for the study of innovations. Review of International Political Economy, 7(4), 595-644. Retrieved from https://doi.org/10.1080/096922900750034563
Huang, Z., Zhang, H., & Duan, H. (2020). How will globalization contribute to reduce energy consumption? Energy, 213 (2020), 118825. Retrieved from https://doi.org/https://doi.org/10.1016/j.energy.2020.118825
Hunt, S. D., & Morgan, R. M. (1995). The Comparative Advantage Theory of Competition. Journal of Marketing, 59(2), 1-15.
Huynh, C. M., & Hoang, H. H. (2019). Foreign direct investment and air pollution in Asian countries: does institutional quality matter? Applied Economics Letters, 26(17), 1388-1392.
International Energy Agency. (2022). Southeast Asia Energy Outlook 2022. Retrieved from https://www.iea.org/reports/southeast-asia-energy-outlook-2022
Investopedia. (2023). Globalization in Business With History and Pros and Cons. Retrieved from https://www.investopedia.com/terms/g/globalization.asp
Kacowicz, A. M. (2015). Globalization and the Distribution of Wealth. New York: Cambridge University Press.
Kirby, P. (2006). Theorising globalisation's social impact: proposing the concept of vulnerability. Review of International Political Economy, 13(4), 632-655. Retrieved from https://doi.org/10.1080/09692290600839915
Krugman, P. (1980). Scale Economies, Product Differentiation, and the Pattern of Trade. The American Economic Review, 70(5), 950-959. Retrieved from http://www.jstor.org/stable/1805774
Law, S. H., Tan, H. B., & Azman-Saini, W. N. W. (2015). Globalisation, Institutional Reforms and Financial Development in East Asian Economies. The World Economy, 38(2), 379-398.
Li, B., Nian, V., Shi, X., Li, H., & Boey, A. (2020). Perspectives of energy transitions in East and Southeast Asia. WIREs Energy and Environment, 9(1), e364. Retrieved from https://doi.org/https://doi.org/10.1002/wene.364
Li, Y., Wang, J., & Oh, K. (2022). Effects of Globalization on the Convergence of Poverty Levels among Asian Countries. International Economic Journal, 36(2), 193-205. Retrieved from https://doi.org/10.1080/10168737.2022.2052742
Liargovas, P. G., & Skandalis, K. S. (2012). Foreign Direct Investment and Trade Openness: The Case of Developing Economies. Social Indicators Research, 106(2), 323-331. Retrieved from https://doi.org/10.1007/s11205-011-9806-9
Luongo, G. P., Menendez, H., Pautzke, T., Rupp, D., & Tait, J. (2015). The Impact of Globalization on Income Distribution and Income Inequality. In D. Audretsch, E. Lehmann, A. Richardson, & S. Vismara (Eds.), Globalization and Public Policy: A European Perspective (pp. 5-37). Springer International Publishing. Retrieved from https://doi.org/10.1007/978-3-319-17692-5_2
Mahmood, T., & Ahmad, E. (2018). The relationship of energy intensity with economic growth:Evidence for European economies. Energy Strategy Reviews, 20(2018), 90-98. Retrieved from https://doi.org/https://doi.org/10.1016/j.esr.2018.02.002
Maryam, J., Banday, U. J., & Mittal, A. (2018). Trade intensity and revealed comparative advantage: an analysis of Intra-BRICS trade. International Journal of Emerging Markets, 13(5), 1182-1195.
Mazzone, A. (2020). The Regulation and Policy of Latin American Energy Transitions. Elsevier Science.
Milchram, C., Märker, C., Schlör, H., Künneke, R., & van de Kaa, G. (2019). Understanding the role of values in institutional change: the case of the energy transition. Energy, Sustainability and Society, 9(1), 46. Retrieved from https://doi.org/10.1186/s13705-019-0235-y
Ndoya, H., & Asongu, S. A. (2022). Digital divide, globalization and income inequality in sub-Saharan African countries: analysing cross-country heterogeneity. Social Responsibility Journal, 20(1), 1-19. Retrieved from https://doi.org/10.1108/SRJ-07-2022-0277
North, D. C. (1989). Institutions and economic growth: An historical introduction. World Development, 17(9), 1319-1332.
North, D. C. (1991). Institutions. The Journal of Economic Perspectives, 5(1), 97-112
OECD. (2011). Globalisation, Comparative Advantage and the Changing Dynamics of Trade. OECD. Retrieved from https://www.oecd.org/publications/globalisation-comparative-advantage-and-the-changing-dynamics-of-trade-9789264113084-en.htm
Ozcan, B., Yucel, A. G., & Temiz, M. (2022). Chapter 7 - The effect of globalization on energy consumption: evidence from selected OECD countries. In M. Shahbaz, A. K. Tiwari, & A. Sinha (Eds.), Energy-Growth Nexus in an Era of Globalization (pp. 173-202). Elsevier. Retrieved from https://doi.org/https://doi.org/10.1016/B978-0-12-824440-1.00015-1
Padhan, H., Sahu, S. K., & Dash, U. (2022). Economic globalization and energy consumption patterns in Organisation for Economic Co-operation and Development economies. Energy & Environment, 33(7), 1396-1416. Retrieved from https://doi.org/10.1177/0958305x211042537
Portes, A. (2021). Innovation as social change: an institutional analysis. International Review of Sociology, 31(3), 356-372. Retrieved from https://doi.org/10.1080/03906701.2021.2015983
Powell, T. (2015). Comparative Advantage. In Wiley Encyclopedia of Management (pp.1-1). Retrieved from https://doi.org/https://doi.org/10.1002/9781118785317.weom120188
Pradhan, & Prakash, R. (2010). Trade Openness and Foreign Direct Investment in India: The Globalization Experience. IUP Journal of Applied Finance, 16(3), 26-43.
Rahman, M. M., & Alam, K. (2022). Effects of globalization, energy consumption and ICT on health status in Australia: the role of financial development and education. BMC Public Health, 22(1), 1565. Retrieved from https://doi.org/10.1186/s12889-022-13911-5
Rehman, A., Radulescu, M., Ma, H., Dagar, V., Hussain, I., & Khan, M. K. (2021). The Impact of Globalization, Energy Use, and Trade on Ecological Footprint in Pakistan: Does Environmental Sustainability Exist? Energies, 14(17), 5234. Retrieved from https://www.mdpi.com/1996-1073/14/17/5234
Resosudarmo, B. P., Rezki, J. F., & Effendi, Y. (2023). Prospects of Energy Transition in Indonesia. Bulletin of Indonesian Economic Studies, 59(2), 149-177. Retrieved from https://doi.org/10.1080/00074918.2023.2238336
Ricardo, D. (1817). On the principles of political economy and taxation. London: John Murray, 1817. Retrieved from https://search.library.wisc.edu/catalog/999736985502121
Rodrik, D. (2008). Normalizing Industrial Policy. The World Bank Group. Retrieved from https://EconPapers.repec.org/RePEc:wbk:wbpubs:28009
Safrina, R., & Utama, N. A. (2023). ASEAN energy transition pathway toward the 2030 agenda. Environmental Progress & Sustainable Energy, 42(4), e14101. Retrieved from https://doi.org/https://doi.org/10.1002/ep.14101
Sardiyo, & Dhasman, M. (2019). Globalization and Its Impact on Economic Growth:Evidence from ASEAN Countries. Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, 14(2), 104-119.
Sen, A. (2002). How to Judge Globalism. The American Prospect. Retrieved from https://prospect.org/features/judge-globalism
Şengül, M. B., Alpkan, L., & Eren, E. (2015). Effect of Globalization on the Operational Performance: A Survey on SMEs in the Turkish Electric Industry. International Business Research, 8(7), 57-67.
Shakya, S. R., Adhikari, R., Poudel, S., & Rupakheti, M. (2022). Energy equity as a major driver of energy intensity in South Asia. Renewable and Sustainable Energy Reviews, 170(2022), 112994. Retrieved from https://doi.org/https://doi.org/10.1016/j.rser.2022.112994
Shen, J. H., Long, Z., Lee, C.-C., & Zhang, J. (2022). Comparative advantage, endowment structure, and trade imbalances. Structural Change and Economic Dynamics, 60(2022), 365-375. Retrieved from https://doi.org/https://doi.org/10.1016/j.strueco.2021.12.012
Stiglitz, J. E. (2002). Globalization and Its Discontents. W. W. Norton & Company.
Suksai, C. (2022). The Nexus of Logistics Performance and Trade Flows between China and Thailand. Journal of ASEAN PLUS+ Studies, 3(1), 59-68. Retrieved from https://so06.tci-thaijo.org/index.php/aseanplus/article/view/256848/173552
Suwanto, Ienanto, M. M. G., & Suryadi, B. (2021). Innovations to Drive the Energy Transition in the ASEAN Region (Policy Brief, Issue. ASEAN Centre for Energy). Retrieved from https://kasets.art/GhAhQh
Tadesse, B., Shukralla, E., & Fayissa, B. (2019). Institutional quality and the effectiveness of aid for trade. Applied Economics, 51(39), 4233-4254. Retrieved from https://doi.org/10.1080/00036846.2019.1589644
Thurbon, E., & Weiss, L. (2006). Investing in openness: The evolution of FDI strategy in South Korea and Taiwan. New Political Economy, 11(1), 1-22. Retrieved from https://doi.org/10.1080/13563460500494784
Todaro, M. P., & Smith, S. C. (2021). Economic Development (12 ed.). Pearson Publications.
Torstensson, J. (1998). Country size and comparative advantage: An empirical study. Weltwirtschaftliches Archiv, 134(4), 590-611. Retrieved from https://doi.org/10.1007/BF02773289
Uzar, U. (2020). Political economy of renewable energy: Does institutional quality make a difference in renewable energy consumption? Renewable Energy, 155, 591-603. Retrieved from https://doi.org/https://doi.org/10.1016/j.renene.2020.03.172
Wan, G., Lu, M., & Chen, Z. (2007). Globalization and Regional Income Inequality: Empirical Evidence from Within China. Development Economics.
Widodo, T. (2009). Comparative Advantage: Theory, Empirical Measures And Case Studies. Review of Economic and Business Studies, 4, 57-82.
Williamson, O. E. (1979). Transaction-Cost Economics: The Governance of Contractual Relations. The Journal of Law & Economics, 22(2), 233-261.
Wolff, P. (2022). The 2030 Agenda and Capital Market Integration in ASEAN. In V. Anbumozhi, K. Kalirajan, & F. Kimura (Eds.), Sustainable Development Goals and Pandemic Planning: Role of Efficiency Based Regional Approaches (pp. 543-565). Springer Nature Singapore. Retrieved from https://doi.org/10.1007/978-981-16-6734-3_13
Zhao, X., Liu, C., Sun, C., & Yang, M. (2020). Does stringent environmental regulation lead to a carbon haven effect? Evidence from carbon-intensive industries in China. Energy Economics, 86(2020), 104631. Retrieved from https://doi.org/https://doi.org/10.1016/j.eneco.2019.104631