The contribution of energy policies to green energy transition in the Asia-Pacific region

Abstract

The Asia–Pacific (APAC) region accounts for the largest part of the global greenhouse gas emissions and roughly half of the world's energy demand. This means that the success of APAC countries, including China and India, in switching to clean energy sources is crucial for meeting the global emission targets. To achieve the Paris Agreement goals, it is essential that large economies strengthen their efforts in reducing carbon emissions. Since 2020, many countries in the region have already seen record-breaking growth of renewable energy installed capacity and use. This study aims to analyse the role of energy policy instruments (including feed-in tariffs, quotas, tenders, and tax incentives) for green energy transition in 16 Asia-Pacific economies. A fixed-effect model for panel data estimation approach was applied with data spanning from 2000 to 2021. The findings show that renewable energy policy instruments are vital for green energy transition in the region. More specifically, feed-in tariffs, quotas, and tenders play an important role in green energy transition, but tax incentives are not. The findings may be used by Asia-Pacific Economic Cooperation coordination bodies in preparing recommendations and policy advice to member governments to ensure green energy transition at the regional level.