ASEAN to hold workshop on how energy prices influence economic performance
Unpredictable oil price changes affect Asian developing economies, which have fewer resources than developed countries to cope with energy price fluctuations.
Since oil is the primary energy carrier in most Asian countries, oil price fluctuations can cause volatility in other energy carriers' prices and Asian economies, as has been demonstrated recently. Research by Yoshino and Taghizadeh-Hesary in 2016 shows that after nearly 5 years of stability, the price of a barrel of Brent crude fell from over $100 in September 2014 to less than $46 in January 2015—a drop of more than half in less than 5 months.
Unpredictable oil price changes affect Asian developing economies, which have fewer resources than developed countries to cope with energy price fluctuations. Yoshino and Taghizadeh-Hesary in 2015 concluded the reason was that developed countries have high fuel substitution (higher use of nuclear electric power, gas, and renewables); greater strategic crude oil stocks; and government-mandated energy efficiency targets. How should developing Asia should deal with oil price volatility?
ADBI and the ASEAN Secretariat will hold a workshop on 1 August 2018 to give 14 government officials from Cambodia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand, and Viet Nam the opportunity to examine how volatile energy prices influence the economic performance of developed and developing economies; to identify the channels of the impacts of oil price changes such as financial instruments, monetary variables, environmental factors, and trade linkages; and to find out what the implications are of energy price volatility and regional economic and energy cooperation for energy policy and security.
The event is in line with ADBI's call for papers for a special issue of Energy Policy, an Elsevier journal. Authors of some papers to be published will be invited to present them at the event.
- Enhance cooperation between Asian countries to reinforce energy security through increased regional trade
- Improve the capacity of ADB developing member country government officials to deal with energy price fluctuations and energy security issues
14 government officials from Cambodia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand, and Viet Nam.