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The Impact of Renewable Energy on Economic Well-Being of Malaysia: Fresh Evidence from Auto Regressive Distributed Lag Bound Testing Approach

Author

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  • Muhammad Haseeb

    (Taylor s Business School, Taylors University Lakeside Campus, 1 Jalan Taylors, 47500 Subang Jaya Selangor Malaysia,)

  • Irwan Shah Zainal Abidin

    (Asian Research Institute of Banking and Finance, University Utara Malaysia, Sintok 06010 Kedah Malaysia,)

  • Qazi Muhammad Adnan Hye

    (Mohammed Ali Jinnah University Karachi, Pakistan,)

  • Nira Hariyatie Hartani

    (School of Government, College of Law, Government and International Studies, Universiti Utara Malaysia, Sintok 06010 Kedah, Malaysia)

Abstract

This present study examines the role of renewable energy in influencing economic well-being in Malaysia. We used annual data over the period of 1980 to 2016 in order to apply recent econometrics. The study used renewable energy and economic growth as a proxy of economic well-being to examine the long run connection between renewable energy and economic well-being. The results of ARDL bound testing approach confirm the valid long-term connection among renewable energy and economic well-being in Malaysia. Furthermore, the results indicate that renewable energy have significant and positive impact on economic well-being in short and long run. It is therefore recommended that the policymakers are required to focus on the green energy generation sector by increasing renewable energy production from the existing sources.

Suggested Citation

  • Muhammad Haseeb & Irwan Shah Zainal Abidin & Qazi Muhammad Adnan Hye & Nira Hariyatie Hartani, 2019. "The Impact of Renewable Energy on Economic Well-Being of Malaysia: Fresh Evidence from Auto Regressive Distributed Lag Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 269-275.
    • Handle: RePEc:eco:journ2:2019-01-34
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    5. Suki, Norazah Mohd & Suki, Norbayah Mohd & Afshan, Sahar & Sharif, Arshian & Meo, Muhammad Saeed, 2022. "The paradigms of technological innovation and renewables as a panacea for sustainable development: A pathway of going green," Renewable Energy, Elsevier, vol. 181(C), pages 1431-1439.
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    More about this item

    Keywords

    Renewable energy; economic well-being; ARDL bound testing; Malaysia.;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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