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The Impact of Energy Consumption based on Fossil Fuel and Hydroelectricity Generation towards Pollution in Malaysia, Indonesia and Thailand

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  • Abdul Rahim Ridzuan

    (Faculty of Business and Management, Universiti Teknologi MARA, Kampus Alor Gajah, Km 26 Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia,)

  • Aliashim Albani

    (Universiti Malaysia Terengganu, Malaysia,)

  • Abdul Rais Abdul Latiff

    (Universiti Sains Malaysia, Malaysia,)

  • Mohamad Idham Md Razak

    (Universiti Teknologi MARA, Malaysia,)

  • Mohd Haziq Murshidi

    (Universiti Malaysia Sabah, Malaysia.)

Abstract

This study investigated the effects of energy consumption (ENY) based on fossil fuels and alternative energy with hydroelectricity as its proxy upon pollution, aside from ascertaining if the correlation between income and pollution determined the presence of Environmental Kuznets curve (EKC). In addition, the functions of foreign direct investment (FDI) inflows and trade openness (TO) were probed into so as to generate more precise outcomes of EKC hypothesis. Hence, in order to fulfil the objectives outlined in this study, the Bound estimation method was utilized to examine three developing nations of the Association of South East Asian Nation (ASEAN), which are Malaysia, Indonesia, and Thailand. The main finding of interest retrieved from this paper refers to the EKC hypothesis reflective of Malaysia and Thailand. It was discovered that hydroelectricity favourably lowered the release of carbon emissions in the case of Malaysia, while it insignificantly influenced environmental degradation for Indonesia and Thailand. On the other hand, as anticipated, per capita energy use displayed a significant long-run effect in raising the levels of carbon emission in Indonesia and Thailand. Meanwhile, the FDI inflows seemed to improve the environmental quality only in Malaysia, while deepening in TO among ASEAN-3 nations appeared to successfully minimize issues related to environmental degradation in these countries.

Suggested Citation

  • Abdul Rahim Ridzuan & Aliashim Albani & Abdul Rais Abdul Latiff & Mohamad Idham Md Razak & Mohd Haziq Murshidi, 2020. "The Impact of Energy Consumption based on Fossil Fuel and Hydroelectricity Generation towards Pollution in Malaysia, Indonesia and Thailand," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 215-227.
    • Handle: RePEc:eco:journ2:2020-01-32
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    2. Mesagan, Ekundayo Peter & Olunkwa, Chidi Ndubuisi, 2022. "Heterogeneous analysis of energy consumption, financial development, and pollution in Africa: The relevance of regulatory quality," Utilities Policy, Elsevier, vol. 74(C).
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    5. Yousif Osman, 2024. "Implications of Energy Consumption by Sector on Carbon Emissions in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 311-318, March.
    6. Oleg ANDREEV & Oksana LOMAKINA & Ariadna ALEKSANDROVA, 2021. "Diversification Of Structural And Crisis Risks In The Energy Sector Of The Asean Member Countries," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 149-160, June.
    7. Arup Roy & Ranjan DasGupta, 2024. "Economic Development, Energy Consumption, and Environmental Deterioration: A Non-Linear Evidence from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 22(3), pages 721-747, September.
    8. Daniel Balsalobre-Lorente & Nuno Carlos Leitão & Festus Victor Bekun, 2021. "Fresh Validation of the Low Carbon Development Hypothesis under the EKC Scheme in Portugal, Italy, Greece and Spain," Energies, MDPI, vol. 14(1), pages 1-17, January.
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    More about this item

    Keywords

    Energy Consumption; Hydroelectricity; Real Output; Carbon Emissions;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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