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Impacts of Renewable Energy Transitions on the Economic Growth in Malaysia: A Dynamic ARDL Simulations

Author

Listed:
  • Nurulhuda Seriram

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia)

  • Muhamad Rias K. V. Zainuddin

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia)

  • Hakimah Nur Ahmad Hamidi

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Malaysia)

  • Amirul Hamza Abdullah

    (Business Analytics, Kumpulan Wang Persaraan, Malaysia)

Abstract

This study explores the dynamic relationships between renewable energy transitions and economic growth in Malaysia, with a specific focus on hydroelectric power, using the Dynamic Autoregressive Distributed Lag (D-ARDL) simulations. The research leverages extensive time-series data from 1988 to 2022 to analyze the impacts of hydroelectric and non-renewable energy consumption on the nation's economic trajectory. Our findings indicate a positive long-term relationship between hydroelectric power usage and GDP growth, highlighting renewable energy's pivotal role in sustainable economic development. Additionally, the study examines the short-term adjustments and the effectiveness of hydroelectric power in reducing dependence on non-renewable energy sources, which are crucial for achieving Malaysia's Nationally Determined Contributions (NDC) for 2030. The dynamic ARDL simulations provide nuanced insights into the potential future impacts of increased hydroelectric power usage, underscoring its dual benefits for economic growth and environmental sustainability. This research contributes to the understanding of energy transitions within the context of Malaysia's unique economic and environmental landscape, offering implications for policy and investment in renewable energy infrastructure.

Suggested Citation

  • Nurulhuda Seriram & Muhamad Rias K. V. Zainuddin & Hakimah Nur Ahmad Hamidi & Amirul Hamza Abdullah, 2024. "Impacts of Renewable Energy Transitions on the Economic Growth in Malaysia: A Dynamic ARDL Simulations," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 251-258, September.
    • Handle: RePEc:eco:journ2:2024-05-26
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    References listed on IDEAS

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    More about this item

    Keywords

    Renewable Energy; Hydropower; Economic Growth; Energy Transitions; Dynamic Autoregressive Distributed Lag;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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