Nav: Home

Renewable and nonrenewable energy in Myanmar's economic growth

July 23, 2019

The Republic of the Union of Myanmar is located in the western part of the Indochinese Peninsula and has a number of peculiar economic features. Green energy accounts for a considerable share of the country's energy balance. However, Myanmar is the second biggest source of greenhouse emissions among ASEAN states. The state revoked fossil fuel subsidies in 2007 to prevent its wide use, and three years later a military government was overthrown by a democratic one which attracted investments to the country. Trade liberalization and increased economic growth accelerated the production of renewable energy. Recently the growth of GDP in Myanmar has been amounting to 6.9% p.a.

Energy is a category of natural capital and an integral component of economic growth (along with capital and workforce). CO2 emissions are considered a negative side of such growth and a sign of low-efficient technologies. Ecologists recommend replacing carbon-bearing energy with clean and renewable. Green energy is generated from renewable resources that are replenished naturally within human time span. Such sources include sunlight, wind, rain, and geothermal heat.

Renewable energy sources help reduce ecological costs and increase economic growth. A number of studies have shown that renewable energy creates new workplaces and opens new prospects for entrepreneurs. It reduces the burden on the external accounts (financial flows between countries) and supports stable economic growth. According to the International Energy Agency, the share of green energy would increase by over ? by 2022, and by 40% by 2050. Many EU states, China, and the USA want to become world leaders in the field of renewable energy.

The purpose of the work was to understand the role of various energy sources in Myanmar's economic growth. No similar studies of developing states have even been carried out before.

Before the study began, the scientists developed three hypotheses: advanced energy use increases the level of economic growth; renewable energy causes economic growth; and the intensity of ??2 emissions and low technological efficiency prevent economic growth.

To confirm them, the scientists analyzed the data for the period from 1990 to 2016 and developed a mathematical model on their basis. Stable per capita GDP in USD (at the rate of 2010) was taken as the dependent variable of the equation. Two independent variables were general use of renewable and nonrenewable energy in gigawatt-hours. The intensity of ??2 emissions per energy unit was considered an indicator of technological efficiency. All variables were log-transformed to reduce the influence of anomalies on the calculations.

The model confirmed all three hypotheses. The study demonstrates that total energy use is positive but insignificant in promoting economic growth in the short and long run. In the second model, the influence of decomposed energy use on economic growth shows that renewable energy and non-renewable energy uses are inconclusive in the long run, but renewable energy use is positive and significant in the short run. Model 3 shows the impact of renewable energy on growth while incorporating other control variables. Lastly, Model 4 is reestimated by considering the impact of the interaction term between NRE and technological inefficiency (CO2I) on growth. The direct impact of NRE is negative and significant. Likewise, the interaction of NRE and CO2I is also negative and significant, which implies that NRE, along with efficient technology use, in the production process is counterproductive to economic growth.

According to the IEA, the carbon intensity of electrical energy production all over the world amounts to 0.5 g per 1 kW in 2018. The optimal share of renewable energy in the total energy consumption should make 51.43%, however, currently it is less than 3%. The model showed that renewable energy sources accelerate economic growth while nonrenewable ones have almost no impact on it. In the long term the increase of green energy use by 1 unit would lead to economic growth by 0.3 units.

«The study provides several policy implications. Given the minor role of nonrenewable energy and the importance of renewable sources, political emphasis should be placed on the latter. Currently Myanmar remains an oil importer which has a negative impact on its external accounts and economic growth. New technologies would increase its technological efficiency and speed up its development», concludes says Sohag Kazi, PhD, Senior Researcher, Department of Econometrics and Statistics, Higher School of Economics and Management, UrFU.

The participants of the study also represented the University of Southern Queensland, Bangladesh Ministry of Education, Stellenbosch University (South Africa), and Jahangirnagar University (Bangladesh).
-end-


Ural Federal University

Related Renewable Energy Articles:

Using fiber optics to advance safe and renewable energy
Fiber optic cables, it turns out, can be incredibly useful scientific sensors.
Renewable energy developments threaten biodiverse areas
More than 2000 renewable energy facilities are built in areas of environmental significance and threaten the natural habitats of plant and animal species across the globe.
Could water solve the renewable energy storage challenge?
Seasonally pumped hydropower storage could provide an affordable way to store renewable energy over the long-term, filling a much needed gap to support the transition to renewable energy, according to a new study from IIASA scientists.
Switching to renewable energy could save thousands of lives in Africa
New research from Harvard University and the University of Leicester finds that if Africa chooses a future powered by fossil fuels, nearly 50,000 people could die prematurely each year from fossil fuel emissions by 2030, mostly in South Africa, Nigeria and Malawi.
Scientists take strides towards entirely renewable energy
Researchers have made a major discovery that will make it immeasurably easier for people (or super-computers) to search for an elusive 'green bullet' catalyst that could ultimately provide entirely renewable energy.
Where to install renewable energy in US to achieve greatest benefits
A new Harvard study shows that to achieve the biggest improvements in public health and the greatest benefits from renewable energy, wind turbines should be installed in the Upper Midwest and solar power should be installed in the Great Lakes and Mid-Atlantic regions.
Croissant making inspires renewable energy solution
The art of croissant making has inspired researchers from Queen Mary University of London to find a solution to a sustainable energy problem.
Are we underestimating the benefits of investing in renewable energy?
Scientists have estimated the emissions intensity of carbon dioxide and other air pollutants from a major electricity distributor and highlighted key consequences - essential information for policymakers shaping decisions to reduce electricity system emissions.
Lighting the path to renewable energy
Professor Mahesh Bandi of Okinawa Institute of Science and Technology Graduate University (OIST) has co-developed a novel, standardized way of quantifying and comparing these variations in solar power.
How much energy storage costs must fall to reach renewable energy's full potential
The cost of energy storage will be critical in determining how much renewable energy can contribute to the decarbonization of electricity.
More Renewable Energy News and Renewable Energy Current Events

Trending Science News

Current Coronavirus (COVID-19) News

Top Science Podcasts

We have hand picked the top science podcasts of 2020.
Now Playing: TED Radio Hour

Teaching For Better Humans 2.0
More than test scores or good grades–what do kids need for the future? This hour, TED speakers explore how to help children grow into better humans, both during and after this time of crisis. Guests include educators Richard Culatta and Liz Kleinrock, psychologist Thomas Curran, and writer Jacqueline Woodson.
Now Playing: Science for the People

#556 The Power of Friendship
It's 2020 and times are tough. Maybe some of us are learning about social distancing the hard way. Maybe we just are all a little anxious. No matter what, we could probably use a friend. But what is a friend, exactly? And why do we need them so much? This week host Bethany Brookshire speaks with Lydia Denworth, author of the new book "Friendship: The Evolution, Biology, and Extraordinary Power of Life's Fundamental Bond". This episode is hosted by Bethany Brookshire, science writer from Science News.
Now Playing: Radiolab

Space
One of the most consistent questions we get at the show is from parents who want to know which episodes are kid-friendly and which aren't. So today, we're releasing a separate feed, Radiolab for Kids. To kick it off, we're rerunning an all-time favorite episode: Space. In the 60's, space exploration was an American obsession. This hour, we chart the path from romance to increasing cynicism. We begin with Ann Druyan, widow of Carl Sagan, with a story about the Voyager expedition, true love, and a golden record that travels through space. And astrophysicist Neil de Grasse Tyson explains the Coepernican Principle, and just how insignificant we are. Support Radiolab today at Radiolab.org/donate.