Renewable Energy Investment in Asia: A Study on Efficiency and Transition

Strategic Insights -

Researchers from the National Kaohsiung University of Science and Technology have introduced a new framework to measure the efficiency of renewable energy investment in South and Southeast Asia. The study, published in the journal Algorithms, utilized a regret-theory-based approach to assess the efficiency of 16 countries in the region. The findings suggest that India, Pakistan, and Indonesia are the most efficient in allocating resources for renewable energy, while the Philippines, Malaysia, and Vietnam also perform well. However, countries like Sri Lanka and Thailand need to improve their performance, and Cambodia, Myanmar, and Afghanistan face significant challenges in achieving a successful clean energy transition.

Key Takeaways:

  • The study introduced a rejoice-regret utility cross-efficiency DEA (RRUCE-DEA) framework to measure the efficiency of renewable energy investment in Asia.
  • India was found to be the benchmark for efficient RE investment allocation, followed closely by Pakistan and Indonesia.
  • The Philippines, Malaysia, and Vietnam posted strong results, while Sri Lanka and Thailand revealed moderate performance with room for improvement.
  • Cambodia, Myanmar, and Afghanistan encounter significant hurdles in achieving a successful clean energy transition.
  • The RRUCE-DEA outcomes were sensitive to variations in regret aversion and rejoice-regret coefficients.
  • The study provided actionable guidance for policymakers and investors seeking to channel resources toward a cleaner, more sustainable regional energy portfolio.

Statistics:

  • 16 countries in South and Southeast Asia were assessed in the study.
  • India was the most efficient in allocating resources for renewable energy.
  • Pakistan and Indonesia ranked second and third in terms of efficiency.
  • The Philippines, Malaysia, and Vietnam ranked fifth, sixth, and seventh, respectively.
  • Sri Lanka and Thailand ranked tenth and eleventh, respectively.
  • Cambodia, Myanmar, and Afghanistan ranked lowest in terms of efficiency, with significant hurdles to overcome.

Sources:

  • A. Regret-Enhanced DEA Approach to Mapping Renewable Energy Efficiency in Asia's Growth Economies. Algorithms, 2025, 18(5):297.
  • MDPI AG (publisher of Algorithms)
  • National Kaohsiung University of Science and Technology, Kaohsiung City, Taiwan
  • Chia-Nan Wang, Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung City 807618, Taiwan.