COVID-19 and the Energy Sector Development in ASEAN Countries: Assessing the Role of Fiscal Measures for Green Recovery Trajectory

The COVID-19 pandemic has had wide ramifications on many sectors, including energy sector. This draws the interest of numerous scholars who have sought to investigate the impact of the pandemic on the energy sector as well as the prospects for a green recovery trajectory. However, few of these authors have considered the role of fiscal stimulus that governments have provided in the context of green recoveries. This study aims to fill that gap, focusing on the case of ASEAN member states (AMS). For this purpose, we employ both statistical data from official sources and qualitative evidence collected through interviews and Focus Group Discussions (FGD) with officials from ASEAN countries. This study finds that green recovery stimulus in AMS is still limited. Although some of the fiscal supports that ASEAN countries have launched have had indirect effects on energy, policy makers in the region have not prioritized the green recovery at the center of recovery path. A major factor is fiscal limitations that force the governments of ASEAN countries to focus on strengthening the health sector and supporting vulnerable groups. Accordingly, this analysis highlights the importance of exploring other funding opportunities, including grants and concessional financing, to support green recovery in the region.

This article was published in IOP Conference Series: Earth and Environmental Science, Volume 997, The 1st ASEAN International Conference on Energy and Environment, 14/09/2021 – 14/09/2021, Online

This study was supported by the Energy Foundation China (EFC) through the project “ACE-EFC Joint Studies on COVID-19 Impact on Energy Sector Development and Variable Renewable Energy Smart Microgrid – Electric Vehicle Integration”.