2.2.3. Scenario 3 (Pollution Control Scenario)

The ERIA study [26] suggests that minimizing the emission of air pollutants in ASEAN countries is a pre-condition for the future use of coal power plants and for moving gradually to meet the current emission standards for coal plants of the OECD countries. In this regard, this scenario is considered to reflect a future situation where a legislation could take the form of ASEAN agreements to limit SOx and NOx emissions, linked through a uniform emissions standard mechanism in the ASEAN region. This scenario thus adds the cost of deSOx and deNOx facilities to the respective coal-fired plants in our analysis. It is expected that strict pollution control technology requirements/adoption could add heavy financial costs to subcritical plants and thus help phase out generation from subcritical coal-fired electricity generation plants. The approach is expected to accelerate the deployment of HELE plants (all of which reduce NOx and SOx emissions in the ASEAN region).

## 2.2.4. Scenario 4 (Climate Change Mitigation and Pollution Control Scenario)

This potential policy scenario is a mix of Scenarios 2 and 3, and represents a situation whereby carbon price and strict emission controls are imposed on coal power plants in the ASEAN region. This scenario encourages both climate change mitigation and air pollution emission reduction efforts. Under this scenario, the costs of deSOx and NOx facilities and carbon pricing are thus integrated in the overall costs of coal-fired plants.
