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Towards a low carbon ASEAN: an environmentally extended MRIO optimization model.

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Area of Science:

  • Environmental Economics
  • Climate Change Modeling
  • Sustainable Development

Background:

  • Economic growth often correlates with increased carbon emissions, impacting global temperatures.
  • The ASEAN region, particularly Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, faces significant climate change risks due to high greenhouse gas emissions.
  • International commitments necessitate balancing economic development with emission reduction.

Purpose of the Study:

  • To analyze how ASEAN nations can meet carbon reduction targets while pursuing economic growth.
  • To explore the interdependencies between nations in achieving collective or individual carbon emission reduction.
  • To develop a multi-regional input-output model for evaluating economic and emission strategies.

Main Methods:

  • Development of a multi-regional input-output model.
  • Analysis of an eight-sector economy within the ASEAN region.
  • Simulation of strategies to minimize collective and individual carbon emissions.

Main Results:

  • Minimizing collective carbon emissions is compatible with economic growth.
  • Sectors like services, agriculture, and food manufacturing show high growth potential under emission constraints.
  • Simultaneous implementation of multiple emission reduction strategies yields the greatest regional emission reductions.

Conclusions:

  • Nations' carbon emission reduction varies based on technology and economic development.
  • The model provides insights for setting achievable targets and developing tailored policies for priority sectors.
  • Future research should explore flexible trade, transport choices, waste management, and hybrid modeling approaches.