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Experimenting the Long-Haul Association between Components of Consuming Renewable Energy: ARDL Method with Special Reference to Malaysia

Author

Listed:
  • Djoko Roespinoedji

    (Widyatama University, Bandung, Indonesia,)

  • Sri Juniati

    (Widyatama University, Bandung, Indonesia,)

  • Hafnida Hasan

    (College of Administrative Sciences, Applied Science University, Kingdom of Bahrain,)

  • Nasir Abdul Jalil

    (Department of Business Analytics, Sunway University Business School, Sunway University, Malaysia,)

  • Mohd Farid Shamsudin

    (Universiti Kuala Lumpur Business School, Universiti Kuala Lumpur, Malaysia.)

Abstract

Global warming is a standout amongst the present most critical environmental issues, caused generally by emission of greenhouse gases, for example, carbon dioxide from the consuming of fossil fuels. Emissions of carbon dioxide fluctuate all through nations in Asia. It is progressively perceived that nations must act to advance the more prominent utilization of renewable energy resources as a component of activities looking to relieve environmental change. This paper shows a survey of the energy request situation in Malaysia and Indonesia. In this renewable energy, resources are getting to be attractive for sustainable energy development in Malaysia. It is essential for Malaysia to build the consumption of renewable energy to lessen its reliance on dirty fossil fuels for electricity generation. This paper endeavours to examine the elements influencing renewable electricity consumption (REC) in Malaysia. In particular, our examination means to investigate the long-haul relationship among REC, economic growth, CO2 emanations, foreign direct investment (FDI) and exchange transparency over the period from 1980 to 2015. By utilizing autoregressive distributed lag (ARDL) bounds testing cointegration approach, we locate that financial development and FDI are the real drivers for REC. Exchange transparency, be that as it may, is found to have a negative effect on REC over the long haul. Strangely, the impact of CO2 outflows on REC isn t critical. In addition, the vector error correction model (VECM) Granger causality test finds the presence of a unidirectional causality relationship running from GDP to REC, affirming the legitimacy of conservation hypothesis in Malaysia. Some significant policy suggestions are likewise talked about. It is accordingly prescribed that the policymakers are required to concentrate on the green energy generation part by expanding renewable energy creation from the current sources.

Suggested Citation

  • Djoko Roespinoedji & Sri Juniati & Hafnida Hasan & Nasir Abdul Jalil & Mohd Farid Shamsudin, 2019. "Experimenting the Long-Haul Association between Components of Consuming Renewable Energy: ARDL Method with Special Reference to Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 453-460.
    • Handle: RePEc:eco:journ2:2019-06-55
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    Cited by:

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    2. Liton Chandra Voumik & Salma Akter & Mohammad Ridwan & Abdul Rahim Ridzuan & Amin Pujiati & Bestari Dwi Handayani & J. S. Keshminder & Mohamad Idham Md Razak, 2023. "Exploring the Factors behind Renewable Energy Consumption in Indonesia: Analyzing the Impact of Corruption and Innovation using ARDL Model," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 115-125, September.

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    More about this item

    Keywords

    Renewable electricity; consumption; GDP; Auto Regressive Distributed Bound Testing; VECM Granger causality test; Malaysia;
    All these keywords.

    JEL classification:

    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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