Willingness to pay for green electricity in vietnam

Green electricity, generated from renewable energy sources, can be viewed as an environmental public good and provided by the private sector.. The Resolution No.55-NQ/TW of The Politburo

VIETNAM NATIONAL UNIVERSITY, HANOI

VIETNAM JAPAN UNIVERSITY

VIETNAM NATIONAL UNIVERSITY, HANOI

VIETNAM JAPAN UNIVERSITY

ACKNOWLEDGEMENT

I want to express my deepest thanks of gratitude to my respectable supervisor,

Dr Vu Hoang Linh, for his friendly and sympathetic assistance and dedicated involvement throughout the process of this thesis With profound knowledge and experience, he helped me improve and finish my research

I especially owe many thanks to my lectures in the MPP program: Dr.Vu Hoang Linh; Dr Nguyen Thuy Anh; Assoc Prof Phung Duc Tuan; Dr Dang Quang Vinh, Prof Okamoto Naohisa, Pro Kawashima Hiroichi for their invaluable guidance and continuous encouragement Their generous assistance and meaningful suggestions helped me study, research, and prepare for my master's thesis It was my honor to work with my supervisor and my program lectures I have highly appreciated their wisdom, patience, and continuous support during my thesis preparation Without the helpful discussion and the enormous support of my lectures, it would have been difficult for me to complete my research Further, I would like to thank Ms Pham Lan Huong (Program Assistant) for the best support during my study and thesis preparation

I also express my deep appreciation to the respondents who agreed to be answered my survey Without their support and essential and valuable information, I could hardly have completed my research

Last but not least, I express warm and sincere thanks to my beloved family that

supports and encouraged me to finish my thesis

TABLE OF CONTENTS

LIST OF TABLE ii

LIST OF FIGURE iii

LIST OF ABBREVIATIONS iv

CHAPTER I: INTRODUCTION 1

1.1 Research Background 1

1.2 Problem Statement 3

1.3 Purpose of the study 3

1.4 Research Questions 3

1.5 Research Method 4

1.6 Limitation of the study 4

1.7 Structure and overview of the thesis 4

CHAPTER II: LITERATURE REVIEW AND THE THEORETICAL FRAMEWORK 6

2.1 Method to mesure the WTP 7

2.2 Mean value and factors affecting WTP for green electricity 9

2.3 Researchs about WTP in Vietnam 10

CHAPTER III: THE SITUATION OF RENEWABLE RESOURCES IN OTHER COUNTRIES AND VIETNAM 12

3.1 Overview 12

3.2 European energy policies 14

3.3 Asian energy policies 16

3.4 Vietnam energy policies 17

CHAPTER IV: METHODOLOGY 20

4.1 Measurement method 20

4.2 Survey Design 20

4.3 Estimation technique 24

CHAPTER V: FINDING AND DISCUSION 26

CHAPTER VI: CONCLUSION AND POLICY IMPLICATION 32

REFERENCES 35

APPENDIX 39

LIST OF TABLE

Table 2.1: Classification Table of WTP methods 7

Table 3.1: Production of renewable energy in the period 2007 – 2017 18

Table 4.1: Summary table of review of WTP for green electricity literature 21

Table 5.1: Distribution of responses by bid amount 26

Table 5.2: Variables Descriptive Statistics 26

Table 5.3: Regression result 29

Table 5.4: Logarit Model Result 30

LIST OF FIGURE

Figure 3.1: World electricity generation mix by fuel, 1971-2018 12

Figure 3.2: CO2 emissions by energy source, World 1990-2018 13

Figure 3.3:Structure of primary energy supply in Vietnam 18

Figure 4.1: The double bounded – Dichotomous Choices Model 23

Figure 5.1: Money Saving for WTP 28

CHAPTER I: INTRODUCTION

1.1 Research Background

In recent years, the world has faced climate change, which seriously affects human health The concept of sustainable development was first appeared and mentioned in the report of the UN World Commission on Environment and Development in 1987 (WCED, 1987), and then, it has become the essential goal for national development orientation In particular, energy resources are one of them Energy supply is necessary for human life and economies for lighting, transport, internet, etc., and its purchasing accounts for 5 to 10% of GNP in developed countries (Twidell & Weir, 2015) Fossil fuel is one of the main sources of energy used, especially in developing countries However, it is the factor that causes rising greenhouse gas emissions and becomes a challenge in sustainable development Besides, the energy demand has increased dramatically due to economic growth and population growth, while natural resources are limited Therefore, there is necessary for a drastic transformation, distribution, and use of energy towards reducing emissions into the environment and sustainable resources The opposite of fossil fuels

is renewable energy, which can restore themselves quickly and unlimited in particular solar, thermal, photovoltaic, bioenergy, hydro, tidal, wind, wave, and geothermal (Boyle, 2004)

Green electricity, generated from renewable energy sources, can be viewed as

an environmental public good and provided by the private sector According to Menges et al (2005), green electricity options help to reduce the demand for fossil fuels, reduce pollution and greenhouse gas emissions, and become a public benefit However, because the cost of investment in infrastructure to produce electricity using renewable energy is very high, its price is usually higher than fossil fuels Therefore, some policy mechanisms have been designed in different countries to support green electricity One of them is voluntary purchases, which require well-educated consumers willing to foster green energy with their assets This amount is called willingness to pay for green goods to improve the environment and ensure their stability in the future WTP is becoming more and more popular and widely studied in

all countries Determining the customer's willingness to pay helps companies and governments develop an appropriate product pricing mechanism to stimulate customer consumption

In Vietnam, the Ministry of Industry and Trade forecasts that demand for electricity in economic development from 2021 - 2025 will still grow at a high rate of 8.5% per year (Thao, 2020) However, energy is mainly dependent on imported fuels

of coal, gas, and liquefied gas Besides, because the impacts of climate change lead to drought, the hydropower reservoir lacks water for production Therefore, the development of renewable energy sources is an inevitable and necessary trend in the development of Vietnam The Resolution No.55-NQ/TW of The Politburo about National energy development strategy has set out, "Prioritize the exploitation, thorough and efficient use of renewable energy, new energy, and clean energy." The period of 2013 - 2019 marks the rapid development of renewable energy sources in Vietnam According to the EVN report (2019), the average annual total power capacity increases by 10.6% Specifically, the renewable energy source increases at the rate of 31.4%/year, wind power at the rate of 42%/year, biomass 54.5%/year, and especially solar power increased 53 times, from 86 MW to over 4,600 MW Although the growth rate of renewable energy is relatively high, its ability to supply electricity

to the national grid only accounts for 7.16%, and the largest source of energy is still coal-fired with 38.12% On the other hand, the Government has a privatization strategy for the power sector, which also opens great opportunities and challenges for using renewable energy After many years of monopolization by state-owned enterprises, the private sector is officially allowed to participate in all areas of the electricity industry Specifically, more and more renewable energy projects have been approved and built, which is the first step in privatizing the electricity sector in Vietnam If WTP and influencing factors are focused on measurement and research, it will help the government or businesses have long-term strategies to promote green electricity Moreover, according to the Resolution No 55, the roadmap for the implementation of a competitive electricity market; mechanism of electricity sale contracts between producers and consumers; The bidding and auction mechanism for energy supply is appropriate, which should be accelerated, especially in renewable energy investment projects, and the electricity purchase price must be transparent

1.2 Problem Statement

This thesis assumes that if the power sector in Vietnam is privatized, there will

be competition between suppliers of green electricity and suppliers of fossil electricity

or nuclear electricity It can be seen clearly that the green electricity supplier will be disadvantaged in terms of price Because there are some costs and benefits with no monetary value, it is not easy to assess them accurately Then these additional production costs are often charged to the end-user of electricity, that is, households (Kowalska-Pyzalska, 2019) On the other hand, customers tend to choose the lower prices for the same product so that the need for fossil electricity will be increased until

it is exhausted There is increasing concern that the emission of fossil fuels will make the climate change situation more severe About two-thirds of greenhouse gas emissions are generated from burning fossil fuels for heating, electricity, transport, and industry (European Environment Agency, 2021) It is believed that by expanding environmental protection campaigns and disseminating information about sustainable development, more and more people are willing to pay a certain amount for green products According to Nielsen (2017), up to 80% of Vietnamese consumers are willing to pay more to buy products with environmentally friendly materials However, different consumers will lead to different levels of payment Therefore, it is necessary

to investigate the willingness to pay (WTP) level for green power among different households to develop preferential policies and set reasonable prices

1.3 Purpose of the study

This paper aims to examine the WTP per month for Green Electricity in Vietnam, and the focus objectives will be household Some different elements are mentioned to analyze which effect on WTP and customers' behavior on choosing GE Then some recommendations are given to increase GE user rates and raise WTP value

1.4 Research Questions

The research focuses on answering the following questions:

Question 1: How much is the Vietnamese people’s willingness to pay for green electricity?

Question 2: Which factors influence willingnes to pay for green electricity in Vietnam?

Question 3: How to change household behavior to support green electricity?

1.5 Research Method

The online survey was used with 241 observations in Vietnam to identify the household's WTP for GE The respondents were asked to answer a survey including three parts to assume that the electricity market will be privatized The first part is general background information about green electricity, environmental pollution, the trustfulness of the policies aiming to improve the environment, and the proportion of clean energy The second part mentions questions on the monthly WTP for the use of green electricity The final part is household information: gender, age, education, number of family members, family income, and expenses A Regression Model was used to analyze the factorial effect on WTP and the behavior of choosing GE

1.6 Limitation of the study

The determination of WTP and factors affecting it helps readers understand the current green electricity market in Vietnam However, this thesis also has some limitations, as below

The survey was collected in May of 2021, the first month of summer in northern Vietnam Therefore, electricity consumption in this month is expected not as high as in the middle of summer or as low as in autumn and winter, so that it may affect the respondent's average electricity bill response

In addition, the sample size of 241 is not large enough to represent the entire country Moreover, due to the outbreak of the covid pandemic, only online surveys were used, leading to unable to reach those who do not use social networks

1.7 Structure and overview of the thesis

The rest of this thesis is organized as followed

Chapter II Literature Reviews and Theoretical Framework This chapter focuses on reviewing related studies such as WTP for green electricity and factors

affecting it in other countries, WTP for other fields in Vietnam, methods used to measure WTP, etc

Chapter III The situation of renewable resources in other countries and Vietnam Status of renewable energy from sources and their emission status in other countries and Vietnam

Chapter IV Research Methodology Describe in detail the WTP measurement method and influencing variables

Chapter V Finding Determine WTP and elements effect on it

Chapter VI Conclusion and policy implication Summarize the content and results of the previous chapters and recommend policy

CHAPTER II: LITERATURE REVIEW AND THE THEORETICAL

FRAMEWORK

Climate Change is rapidly becoming the leading cause affecting the natural environment, ecosystems and especially human life Reducing the greenhouse effect is more urgent than ever According to the United Nations' Intergovernmental Panel on Climate Change mentioned in the third assessment report (2001), renewable energy solutions and energy-efficient technologies will reduce CO2 emissions Realizing the importance of that necessary transformation, countries focus on promoting the formulation and development of appropriate alternative energy development policies Although RE is no longer a new field, in developing countries, where environmental problems face obstacles due to technology and cost, the transition to RE is difficult Renewable Energy has become an attractive field for researchers, especially in developing countries

Green electricity is generated from renewable energy, represents renewable energy resources and technologies that best benefit the environment The U.S Voluntary Market has defined green electricity as produced by renewable energy sources such as solar, wind, hydroelectricity, etc These are energy sources from natural sources or continuously replenishing processes It was preferred and selected for use because of its zero emissions and reduced negative impact on the greenhouse effect (EPA, 2020)

Willingness to pay (WTP) is a tool for buyers to express their environmental products and services preferences The more people are willing to pay for environmental goods, the stronger their preference is Thus, WTP is the "marginal benefits" that buyers expect from providing that additional service (Gabriela Scheufele and Jeff Bennett, 2019) According to Chris Park's definition in "A Dictionary of Environment and Conservation," the Willingness to pay is the amount an individual is willing to pay to acquire a particular good or service It is usually expressed in a specific amount or a price range Although potential customers may be willing to pay less than this threshold, they will not pay a higher price in most cases

2.1 Method to mesure the WTP

In terms of economic theory, green electricity was considered an impure public good, created by the general production of private goods and public goods about the environment, becoming unique and cannot replace (Kotchen, 2006) More specifically, the electricity consumption of individuals for green electricity is a benefit for private interests, and it is for the public is to reduce the level of CO2 to affect the environment People choose to contribute to privately providing public goods because of altruism in private expenditure, according to "classical" economic literature Significantly, many types of altruism were linked to the provision of public goods, including renewable resources (Oerlemans et al., 2016) Customers using green electricity will voluntarily pay an additional cost to produce renewable energy; this increase is the consumer WTP More specifically, WTP is the amount of money that individuals are ready to pay to prevent particular environmental harm, accomplish a specified increase in environmental quality, or get a supply of specific public goods WTP measurement methods differed primarily in whether they directly or indirectly assessed WTP and whether they determined the consumer's presumed or actual WTP (Miller et al., 2011) Table 2.1 provides a detailed classification of the methods used to measure WTP

Table 2.1: Classification Table of WTP methods

Alternative Methods For Determining WTP

Purchase Context Direct Measurement Indirect Measurement

Actual WTP Market Transactions

Experimental Auctions

Incentive-Align Surveys

Hypothetical WTP Contingent Valuation Conjoint (De compositional)

• Self-Explicated Tasks (Compositional)

• Adaptive and Hybrid Conjoint (Mixed)

However, the three most popular methodological approaches will be mentioned below and have been developed to measure willingness to pay, including the contingent valuation method (CVM), experimental auction, and conjoint analysis (Klaus G Grunert et al., 2009) The experimental auction method can provide valuable insight into selling the item for a fair price when the vendor is uncertain about the

customer's valuation There are two ways to determine bids The first is that the auction is sealed, and the second-highest bid determines the purchase price The second is that the participant simultaneously submits a preferential price to purchase a good The selling price is drawn randomly from the price distribution Those who bid higher than the sale price will receive the product for just the sale price amount Experimental auctions are useful for learning about customer ratings of items or brands and may be used to disclose consumer values in order to assist positive future price decisions The WTP for various items is also determined using this method by analyzing purchase behavior Products and pricing easily accommodate the participants’ concerns in an experiment by making the required price modifications Depending on the arrangement, participants were compensated for their participation

in an experiment, which might result in biased estimates and outliers (Voelckner, 2006) The practical disadvantages associated with experimental auction are the costs involved and the time required making them less suitable for many practical application scenarios (Christoph Breidert et al., 2006) Conjoint analysis, on the other hand, is a technique for evaluating people’ preference structures through systematic changes of product characteristics in an experimental design Respondents were shown numerous product profiles, including perceived product characteristics, and were asked to categorize them based on their perceived preferences (Wind & Green, 2004) Specifically, they are asked to rate or evaluate a number of two or more product attributes In some cases, it can result in a rather complex structure due to the many attributes that describe the goods being compared Each respondent will have their own set of choices This process helps to build reasonable preferences and value for the goods This method has a decisive advantage in the flexibility to include new product and price combinations Not only that, but it is also very effective in estimating the individual level However, in conjoint research, interactions between price and other factors are extremely likely to occur, resulting in a violation of the compensatory model There are major implications when the price is introduced as an attribute, such as the price effect, range impact, and number-of-level impact Furthermore, when more than two price levels were employed, there might be problems computing the interpolation heuristics between usefulness and price (Michael Hahsler and Thomas Reutterer, 2015)

Ultimately, because of its high flexibility and applicability, CVM has gained popularity since its introduction by Ciriacy-Wantrup (1947) Specifically, in a hypothetical market created for a non-market good, respondents are asked how much they are willing to pay for that good On the other hand, the results of the WTP survey are also influenced by the elicitation technique in its implementation Oerlemans et al (2016) measured WTP for electricity supplied from renewable energy sources using a sample of 57 research articles on potential pricing applications (green electricity) The results show that the most frequent techniques are open-ended (OE) and dichotomous choice (DC) approaches, resulting in different levels of WTP

2.2 Mean value and factors affecting WTP for green electricity

There have been many research papers to find the suitable households price for green electricity, besides analyzing the factors affecting the level of payment and the behaviour of choosing them Then, they give appropriate solutions to improve the rate

of renewable energy selection The results show that differences in political institutions, policies, cultures and societies, etc., lead to differences in WTP between countries For instance, Hansla et al (2008) pointed out that the WTP of Swedish household consumers for green electricity was influenced by the attitude towards green electricity and electricity costs More specifically, it increased with a positive attitude and decreased with higher prices Using the OLS model and the result of a mail survey of 855 Swedish household, the author showed that 81.5% and 66% were willing to pay at least 0.015 USD and 0.02 USD per kWh of green electricity, respectively Moreover, the attitude towards green electricity was related to the perception of environmental consequences for oneself, others, the biosphere, anxieties about these repercussions, and self-transcendent value types (It was the realiation that people were one small part of a environment protection, and acting accordingly) The researcher assumes that the paper mentions all green power sources, which gives consumers more choice and can express appropriate preferences Meanwhile, Nomura and Akai (2004) provided in-depth analysis by the contingent valuation method (CVM) of the Japanese households WTP in the form of a flat monthly surcharge The result was that the median value was counted at about 2000 yen (about 17 USD) per household per month On the other hand, to determine the value of renewable energy electricity and obtain information on consumer preferences, Guo et al (2014) used the

contingent valuation method (CVM) to estimate Beijing households’ WTP for renewable electricity and identify factors that influence their WTP The survey randomly selected 700 participants, and the results showed that they were willing to pay more about 2.7–3.3 USD per month for renewable resources Factors such as income, electricity consumption, prices, means of payment, knowledge and a positive attitude towards renewable energy all influence WTP of respondents Xie et al (2018) utilized a multivariate regression model to find variables that substantially impacted WTP while considering the effects of the high frequency of respiratory illness As a result, knowledge of renewable energy, confidence in the government, behavior, education, history of respiratory disease, and other elements were necessary for a favorable WTP However, while income factors, beliefs, and illnesses positively affected WTP, gender and age negatively affected it In addition, with a sample number of 468 respondents, the average WTP value of people was 4.8 USD per month

2.3 Researchs about WTP in Vietnam

The renewable energy has appeared in Vietnam for a long time However, due

to the characteristics of the exclusive electricity industry, there haven’t had any study about WTP for the green electricity On the other hand, the WTP has become a familiar tool for researchers to analyze and handle more urgent issues Ngai N.V et al (2012) showed that seven factors that impacted the WTP for clean water supply in Cao Lanh City, Dong Thap province were education, household size, total income, water sources, environmental awareness, address, number of labour From the research results, the researcher suggested several policies such as: adjusting the price of clean water to differentiate between urban and rural areas, raising people's awareness of the environment through propaganda and education; raise the education level of the people; combine agencies and sectors to reduce the rate of poor households; create more jobs for people to increase the number of people working in the family Another study on the mangrove ecosystem issue of Cat Ba Islands conservation area, which the UNESCO has recognized as a biosphere reserve from 2004, was heavily degraded due

to a partial switch to shrimp farming Tien Dat Pham et al (2018) examined factors affecting the WTP to restore mangrove forests The researcher used random valuation methods to estimate household WTP, and as a result, the average WTP was estimated

at 192,780 VND (8.64 USD) WTP was also affected by characteristics such as gender,

academic level, employment, respondents' engagement in mangrove restoration operations, and the consequences of climate change Since then, they proposed that Hai Phong city authorities needed to implement the necessary policies to preserve mangrove forests of the biosphere reserve Besides, WTP is also used to handle both public health problems Van Minh et al (2012) showed that 62% of households ready

to pay to build a discharge toilet bathtub, and the WTP with medium and median values was VND 15.6 million (780 USD) and VND 13 million (650 USD), respectively In particular, the correlations to the proportion of WTP were gender, age, economic conditions of households, existing toilets, the level of satisfaction with toilets and knowledge of the health effects of poor sanitation Moreover, the geographical location and economic status of households were two significant determinants in the amount of WTP

In summary, Vietnam is in the process of privatizing the power sector, and there is no research paper on households WTP and factors that influence WTP for green electricity Therefore, this paper attempts to estimate the WTP of Vietnamese households for green electricity by using the CVM method and examining factors that affect WTP by multiple linear regression models

CHAPTER III: THE SITUATION OF RENEWABLE RESOURCES IN

OTHER COUNTRIES AND VIETNAM

3.1 Overview

Electricity is at the center of modern economies and has an increasing share of supply in energy services One of the main reasons that worldwide CO2 emissions from the power industry reached new highs in 2018 was rising electricity consumption However, a range of low-emission technologies' commercial availability also puts electricity at the forefront of efforts to combat climate change and pollution In particular, renewable energy plays an essential role in providing electricity access

%

Figure 3.1: World electricity generation mix by fuel, 1971-2018

Sources: IEA, World electricity generation mix by fuel, 1971-2018

The figure 3.1 shows the consumption of different energy sources in the world

by energy source It can be seen that from 1971 to 2018, there was an apparent change

in the proportion of electricity from renewables, nuclear, oil, natural gas Meanwhile, coal is still the most used source over the years, peaking in 2007 and accounting for

41.3% of the total generated electricity Although since 2010, Governments have taken more robust measures to promote sustainable development, the proportion is still high,

at 38.2% It is the largest CO2 emitter among fuel sources and has increased over the years, reaching nearly 15,000 Mt CO2 in 2018 (Figure 3.2) The share of renewable energy increased from 19.9% to 25.6% in 2010 and 2018, respectively It is not a rapid increase because renewable energy is entirely focused on investment and development

by governments Since 2014, the ratio of renewable energy has surpassed natural gas; however, the reduction of this source is not much In 2018, its consumption was measured to be around 23.1%, only 2.5% less than renewable energy Besides, it is also one of the three causes of greenhouse gas emissions In 2018, the measured emissions were nearly 7,200 Mt CO2 Due to price instability and massive emissions, the proportion of oil decreased sharply over the years Its share was only 2.9% in 2018, but its emissions are second, reaching around 11,500 Mt CO2 Finally, nuclear energy, although not producing greenhouse gases, is not used much It can be seen that the period of preference for this source is the 90s, but it declined gradually since the 2000s

By 2018, it only accounted for about 10.2% It may be due to safety concerns in the long-term use of nuclear energy

Figure 3.2: CO2 emissions by energy source, World 1990-2018

Source: IEA, CO2 Emissions from Fuel Combustion

According to World Energy Outlook (IEA, World Energy Outlook, 2019), The world's demand for all energy sources is rapidly rising The price of fossil fuels is also

still lower than nuclear and renewable energy sources It makes the fossil energy resources in the world are being depleted because of exploitation for production Furthermore, environmental issues originating from the mining process have prompted the promotion of renewable energy as a means of reducing pollution

Awareness of sustainable energy, clean technology, and climate change was the focus of discussion during the meeting on sustainable development (UN, 2017) Global energy policy trends are related to efforts made by various countries, as well as the influence of policies encouraging renewable energy activities According to Goldthau (2016), energy policy reform requires information regarding energy efficiency, energy resources, available infrastructure and technology, financial, legislative, political, environmental, and climate change Therefore, the energy policy applied in Europe and Asia will be examined more closely for comparison and added values

3.2 European energy policies

Renewable energy has been growing internationally for a decade, and the EU has always been a global leader in supporting renewable energy Each EU nation is in charge of promoting and administering its renewable energy resources (RES) and energy mix programs Despite the many obstacles that have arisen in terms of technological maturity and availability, EU countries should immediately follow the route of the European Commission's RE strategy (Hasanuzzaman et al., 2012) Furthermore, the EU has established the Climate and Energy Package 2020, which seeks to implement a 20% increase in renewable energy generation, a 20% decrease in greenhouse gas (GHG) emissions, and a 20% increase in energy efficiency usage (EC, 2009).The EU development strategy updated package, which targets 27 percent of RES generated for energy, is laying the foundation for the 2030 Agenda for Sustainable Development (EC, 2015) It causes implementation problems for EU nations, where government support in certain elements of incentives and pressures is critical

The Energy Union Strategy was established in 2015 with the objective of providing EU members with competitive, sustainable, safe, and affordable energy The European Commission has highlighted five policy variables that can aid in the

implementation of the plan: energy efficiency, climate action, research, energy security, and the European integrated energy market (EC, 2017) Additionally, most

EU nations' energy policy changes are regulated by the 2016 Paris agreement

For example, Germany implemented the Renewable Energy Heat Act in 2011, which applies to residential and residential buildings and existing buildings of public authorities The Act requires landowners to have an energy mix produced from RES to supply heat for their particular structures, and it permits the use of solar thermal systems, biomass (solid, liquid, or gas), and geothermal/environmental thermal energy The building's owner is allowed to choose the sort of RE they wants to employ In France, the government has proactively raised the price of a carbon (fossil fuel) tax from 22 EUR/tCO2 (in 2016) to 100 EUR/tCO2 (in 2022) The governments of France and the United Kingdom have also announced five-year plans to phase out petrol and diesel automobiles from the roads by 2040 (UN, 2015)

Other European nations, including Finland, Sweden, Austria, and Denmark, are among the top in terms of RES integration for power supply Sweden's goal is to become a carbon-neutral country by 2045 The RES for final energy consumption at Findland achieved 38.7 % in 2014, exceeding the objective of 38% in 2020, and a new target of 50% in 2020 was set Although the Netherlands is famous for its wind power,

it is not used efficiently to generate electricity According to a Eurostat analysis, the Netherlands is lagging behind in the EU 20-20-20 mission, with a market share of RES

of just 6% until 2016 (Nur Iqtiyani Ilhama et al., 2020) The country's primary renewable energy sources are biomass, wind, solar, and geothermal and thermal gas Aside from Germany, the Dutch government have actively pursued a variety of policies and financial incentives to promote RES development in their respective countries

As a result, it is important to ensure the transparency and democratization of policies developed to assess the impact of EU energy policy in order to foster trust and motivate stakeholders to support the goals of EU energy policy With a total of 30 nations in the EU, policy coordination is required Each member has their own national policy, which might cause issues with competition in energy markets among

EU members (Faure et al., 2017) Regardless of the member states' differing policies,

the policies to be developed should be coherent and serve the same purpose as the EU's energy and climate package

3.3 Asian energy policies

As a consequence of the rapid revolution in economic growth and industrial development, Asia is presently seeing an increase in energy demand, with most member nations increasing their energy consumption For example, China has been identified as the world's greatest energy user, followed by India due to increasing energy consumption, with a 42 percent increase between 2000 and 2015 (Kumar Singh, 2013) Malaysia, Singapore, Indonesia, Vietnam, and South Korea are among the other members seeing an increase in energy demand and consumption Japan's energy consumption declined slightly by 0.1% in 2017 as the country continued its efforts to promote energy efficiency However, the initiatives had little effect on Japanese economic development on a macro level (Aoshima et al., 2017)

Primarily, Asia's energy policy objectives are similar to those of Europe Following the implementation of their planned energy policies, national governments assume full responsibility for regulating their energy sector For example, Indonesia enacted the National Energy Plan as a government policy aimed at boosting renewable energy use, energy mix, energy security, and energy access (IEA, 2014) Nevertheless,

it is clear that this strategy is less concerned with decreasing CO2 emissions, as the country is anticipated to quadruple its usage of coal and gas Another case in point is the Korean government energy strategy According to the action plan, renewable energy must account for 11% of total energy supply (IEA, 2011) Therefore, the preliminary decision on New and Renewable Energies made in April 2011 specifies that RE should produce 10% of the total anticipated energy of public buildings (Corporation, K E M, 2011)

Asia is experiencing tremendous economic development Countries in this continent also lead in greenhouse gas emissions Reducing pollution on the energy front requires careful study of environmental, social impacts and energy infrastructure development In particular, China has prioritized numerous emission-reduction measures, including the revolutionary energy supply and consumption plan The Japanese concept of energy strategy may be extended to the majority of Asia Pacific