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The Effects of Electricity Consumption on Agriculture, Service and Manufacturing Sectors in Malaysia

Author

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  • Tan Lee Pei

    (School of Business Innovation and Technopreneurship, University Malaysia Perlis, Malaysia,)

  • Mohd Shahidan Shaari

    (School of Business Innovation and Technopreneurship, University Malaysia Perlis, Malaysia,)

  • Tunku Salha Tunku Ahmad

    (School of Business Innovation and Technopreneurship, University Malaysia Perlis, Malaysia.)

Abstract

This paper aims to examine the effects of electric consumption on three sectors, namely, manufacturing, agriculture and services. The Johansen cointegration model is applied. The results indicate a long-run relationship between electric consumption and three sectors in Malaysia. Vector error correction models shows that it is confirmed that the long run relationship among electric consumption, agriculture and manufacturing in Malaysia. The Granger causality is used, and the results show that electric consumption does not Granger cause manufacturing and services sectors. However electricity consumption does Granger cause agriculture sector.

Suggested Citation

  • Tan Lee Pei & Mohd Shahidan Shaari & Tunku Salha Tunku Ahmad, 2016. "The Effects of Electricity Consumption on Agriculture, Service and Manufacturing Sectors in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 401-407.
    • Handle: RePEc:eco:journ2:2016-03-5
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    References listed on IDEAS

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    2. Tiwari, Aviral Kumar & Eapen, Leena Mary & Nair, Sthanu R, 2021. "Electricity consumption and economic growth at the state and sectoral level in India: Evidence using heterogeneous panel data methods," Energy Economics, Elsevier, vol. 94(C).
    3. Duyen Dang Thi Thuy, 2023. "Energy and Agricultural Development in the Red River Delta Provinces, Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 216-224, July.

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    More about this item

    Keywords

    Electricity consumption; Agriculture; Service; Manufacturing;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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