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Wavelet Analysis of Renewable, Non-renewable Energy Consumption and Environmental Degradation as a Precursor to Economic Growth: Evidence from Malaysia

Author

Listed:
  • Azlan Ali

    (School of Business and Management, University College of Technology Sarawak, Malaysia,)

  • Rashidah Kamarulzaman

    (School of Business and Management, University College of Technology Sarawak, Malaysia,)

  • Fathan K. Soetrisno

    (School of Business and Management, University College of Technology Sarawak, Malaysia,)

  • Mohd Shahril Ahmad Razimi

    (Islamic Business School, Universiti Utara Malaysia, Malaysia.)

Abstract

The present study utilized continuous wavelet power range, and wavelet coherence power range estimations to analyze the relationship among renewable energy consumption, non-renewable energy consumption and environmental degradation by taking about quarterly data for the time of 1997(1) to 2017(4). Moreover, the consequences of wavelet coherence affirm that ENG and CO2 emission have a bi-directional causal association with one another in the medium run and a uni-directional causal relationship where ENC is driving in a short run era. However, we found no proof of a causal relationship in a long and long run period. Finally, the aftereffects of wavelet coherence affirm that RENE and CO2 emission have a bi-directional causal association with one another in short run and a uni-directional causal relationship where CO2 emission is driving in medium run day and age. Nonetheless, we found a proof of a uni-directional causal relationship in a long and long run period where causality is running from renewable energy consumption to environmental degradation in Malaysia.

Suggested Citation

  • Azlan Ali & Rashidah Kamarulzaman & Fathan K. Soetrisno & Mohd Shahril Ahmad Razimi, 2020. "Wavelet Analysis of Renewable, Non-renewable Energy Consumption and Environmental Degradation as a Precursor to Economic Growth: Evidence from Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 182-189.
    • Handle: RePEc:eco:journ2:2020-03-22
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    References listed on IDEAS

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    Cited by:

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    2. Huo, Chunhui & Hameed, Javaria & Cong, Phan The & Nassani, Abdelmohsen A. & Haffar, Mohamed, 2022. "Curing the resource curse with the adoption of resource-rich energy in MINT countries: An application of quantile regression," Resources Policy, Elsevier, vol. 79(C).
    3. Yao Hongxing & Olivier Joseph Abban & Alex Dankyi Boadi, 2021. "Foreign aid and economic growth: Do energy consumption, trade openness and CO2 emissions matter? A DSUR heterogeneous evidence from Africa’s trading blocs," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-25, June.
    4. Bartosz Jóźwik & Antonina-Victoria Gavryshkiv & Phouphet Kyophilavong & Lech Euzebiusz Gruszecki, 2021. "Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe," Energies, MDPI, vol. 14(12), pages 1-17, June.
    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.
    6. Mihail Nikolaevich Dudin & Vadim Nikolaevich Zasko & Olesya Igorevna Dontsova & Irina Valentinovna Osokina, 2022. "Methodology for Assessing Financial Results of Implementation of Energy Innovations Depending on their Progressiveness," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 110-119.
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    More about this item

    Keywords

    Renewable energy consumption; environmental degradation; continuous wavelet transform; wavelet coherence; Malaysia;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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