Cost Effectiveness of theEnergy Efficiency and Conservation Policy in the Association of Southeast Asian Nations

Abstract

The importance of energy efficiency and conservation (EE&C) is commonly discussed amongst policymakers. Countries are regarding this as one of the primary principles constituting energy policy, and various types of EE&C policies have been developed and adopted. However, in reality, expected EE&C investment is not necessarily executed due to high upfront costs and financing difficulties. The first step to overcome these challenges is to understand the potential benefits of EE&C investment and financing. One incentive to invest in EE&C is that the resulting reduction in energy bills could pay off the capital expenditure. Policymakers might also become willing to allocate a budget for an EE&C financing programme if they understand that EE&C investment can bring greater benefits to a county than investment amount. Another necessary step is to learn about possible EE&C financing methods. Eliminating knowledge gaps amongst stakeholders, particularly policymakers and financing institutions, can facilitate finance and hence EE&C investment in a country. In this context, this study will try to identify possible financing methods for EE&C investment and will analyse their costs and benefits. By sharing this information with policymakers in Association of Southeast Asian Nations (ASEAN) member countries, this study intends to help promote EE&C investment in the region.