Energy Security, Economic Growth, and Poverty Reduction: Empirical Evidence from Selected ASEAN Member States

Abstract

This study analyzes energy security and economic growth’s relationship with poverty reduction in selected ASEAN member states. To measure energy security, we consider five factors: availability, applicability, acceptability, affordability, and develop-ability. In this analysis, we run panel cointegration by FMOLS with panel data on eight ASEAN member countries from 1990 to 2016. The empirical results show that all energy security variables, except the renewable energy consumption and CO2 emissions, have positive effects on economic growth. In addition, the results of this study show a positive relationship between poverty reduction and economic growth. Based on these results, policy makers should emphasise to find primary energy sources and focus on available of energy management on both supply and demand side and should research alternative energy sources and provide a diversified combination of energy sources to reduce reliance on primary energy sources in order to support applicability and acceptability. They should also try to modify the energy structure by focusing on the impact and contribution of the accessibility of the poor population whose access to new alternative energy sources can support economic growth for poverty reduction.