The Role of Fiscal Incentives and Market-Based Incentives in Promoting Energy Efficiency in the Industrial Sector: Case Studies from Asia

Sarker, Tapan ORCID: https://orcid.org/0000-0002-0682-2940 and Taghizadeh-Hesary, Farhad and Mortha, Aline and Saha, Anjan (2021) The Role of Fiscal Incentives and Market-Based Incentives in Promoting Energy Efficiency in the Industrial Sector: Case Studies from Asia. In: Energy Efficiency Financing and Market-Based Instruments. Economics, Law, and Institutions in Asia Pacific. Springer, Singapore, pp. 131-149. ISBN 9789811635984


Abstract

In recent years, awareness about climate change and the need for cutting greenhouse gas has spread. Policymakers have hence chosen to promote the use of renewable energy, as well as encouraging improvements in energy efficiency (EE). This study analyzes the policy strategies of four Asian countries with large greenhouse gas emissions and EE strategies: the People’s Republic of China, India, Indonesia, and Japan. The study first reviewed the type of instruments that can be used to reduce energy intensity, namely incentivizing policies (subsidies, tax reductions, and voluntary agreements) and market-based instruments (white certificates and tendering schemes). Through a review of the literature, the study identified advantages and weaknesses, as well as the effectiveness of said policies in the case studies. Fiscal incentives such as tax cuts and market-based instruments are shown to be efficiently reducing energy intensity. The study also highlighted the role of voluntary agreements and careful planning in successfully improving EE in the People’s Republic of China. On the other hand, direct subsidies represented a heavy burden on the government’s budget, with limited results.


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Item Type: Book Chapter (Commonwealth Reporting Category B)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 03 May 2022 05:16
Last Modified: 17 May 2022 03:24
Uncontrolled Keywords: Energy efficiency finance, sustainable finance, industrial sector, Asia
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380115 Public economics - taxation and revenue
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350201 Environment and climate finance
Socio-Economic Objectives (2020): 19 ENVIRONMENTAL POLICY, CLIMATE CHANGE AND NATURAL HAZARDS > 1903 Mitigation of climate change > 190301 Climate change mitigation strategies
17 ENERGY > 1701 Energy efficiency > 170102 Industrial energy efficiency
Identification Number or DOI: https://doi.org/10.1007/978-981-16-3599-1_6
URI: http://eprints.usq.edu.au/id/eprint/47727

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