Energy pricing and subsidies


Energy pricing and subsidies

27-28 February, 2015
Pathumwan Princess Hotel, Bangkok

(held under the Chatham House Rule)

AEMI Forum Group Photo, February 2015, Bangkok

AEMI Forum Group Photo, February 2015, Bangkok

Objectives

The core objective of this AEMI Forum was to develop ASEAN-wide tools and methodology for analysing the impacts of energy subsidy removal, with a view to developing relevant policy recommendations for APAEC 2016-2025. The forum was convened to reach agreement on an analytical approach and division of labour, and examine a proposed outline for the research to be undertaken in order to address three interrelated questions:

  1. What are the options for decoupling energy pricing from welfare objectives in order to assist the poor in the most vulnerable ASEAN communities?
  2. Can AEMI help to develop ASEAN-wide instruments for protecting the poor while allowing the energy market to function efficiently?
  3. What will be the policy recommendations for the new APAEC 2016-2025?

Outcomes

The participants agreed that a common and coherent analytical approach was necessary in order to make it possible to compare their findings across the 10 ASEAN members, and to formulate recommendations at the aggregate ASEAN-level. For this purpose, they adopted common definitions, databases and modelling tools, and established a coherent analytical approach to analysing the impacts of energy subsidy removal and to formulating ASEAN-level policy recommendations for the APAEC.

In order to proceed with this analytical work, the participants concluded that their first task would be to construct 10 Computable General Equilibrium (CGE) models, one for each ASEAN member. These would form the basis for creating an aggregate multi-country ASEAN CGE that will be necessary for ASEAN-level analysis and policy formulation in the framework of the ASEAN Economic Community (AEC). Such an analytical tool would be very valuable in formulating a number of ASEAN policies, including energy market integration. The participants identified country teams to deliver this work, and mandated the AEMI Group to look for funding to support such an undertaking.

Forum Papers

AEMI Forum Photo, February 2015, Bangkok

AEMI Forum Photo, February 2015, Bangkok

AEMI Forum Photo, February 2015, Bangkok

AEMI Forum Photo, February 2015, Bangkok

AEMI Forum Photo, February 2015, Bangkok

AEMI Forum Photo, February 2015, Bangkok