In another study, Srinivasan (2013) investigates the role of electricity as the primary export and evaluate the impact on the terms of trade exporter nation. This paper found the electric power exporting economy would be better off developing its manufacturing sector to diversify its exposure and to protect its trade interests.
The case of Bhutanese hydro-electricity exports to India is studied and the change in trade advantage with every increase in power tariff.
(Nakayamaa and Maekawab, 2013)
Countries with large potential for hydropower generation can seize large benefits by connecting their hydropower stations to transboundary power grids and trading electricity with other nations. Such benefits include income from selling hydropower; construction of hydropower stations not otherwise financially viable; certified emission reduction (CER) credits from a clean development mechanism. In the case of Buyer countries can also reap gains from such a partnership, namely the importing of cheap electricity, diversification of energy sources to improve disaster preparedness, reduction of greenhouse gas emissions, and CER credits in the developing world.
Benefits for electricity-selling countries of connecting hydropower stations to transboundary power grids.
Laos can also further develop hydropower stations and
increase national income.
(Chang and Li, 2013)
The ASEAN Power Grid (APG) that interconnects all ASEAN countries and enables cross-border power trade could potentially provide cost-saving solutions.
Scenarios are built around the assumptions about the power trade policy regimes. It is found that more open power trade regime encourages development of renewable sources of power generation, and accrues more savings in the total cost of meeting the growing future power demand.
a few existing studies have focused on the institutional and policy aspects of regional development in relation with energy cooperation.The policy and institutional barriers to the formation of the Greater Mekong Sub-region (GMS) developing new power generation capacity and transmission lines to meet the growing demand over time.