Long Run Energy Demand and Its Determinants: A Panel Cointegration Analysis of the Association of Southeast Asian Nations-5

Energy determinants continue to reinforce the sustained rise in energy demand over the coming years. Such concern has captured considerable attentions among the governments worldwide in the anticipation of its unabated rise to jeopardize a country's long term energy security. Specifically, this paper investigates the interplay between energy demand and its determinants notably world oil price, economic growth, population, urbanization and energy access in the ASEAN-5 over the 2000–2016 period. At the aggregated level, the long run results reveal that economic growth, energy access and urbanization have significant effects on energy demand. However, the results vary by the disaggregated fuel type, respectively. Therefore, energy conservation policy is the viable option in the ASEAN-5 going forward. Also, the policy makers are suggested to secure for reliable and affordable energy supplies with minimal environmental impacts, promote a sustainable development and socio-economic growth and enhance the quality of life. Keywords: ASEAN-5; energy conservation; energy demand; energy security JEL Classifications: C33, Q41, Q4