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How are energy and employment related? An analysis in ASEAN-5 open economies

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  • Chung-Khain Wye
  • Elya Nabila Abdul Bahri
  • Ishak Yussof
  • Wei Mao

Abstract

Energy efficiency policy implemented within ASEAN-5 region raises concern over the possibility of compromising economic growth and trade in general, and labour market stability in specific. Previous studies have mostly considered the linear association and ignored nonlinearity between energy consumption and employment. Testing the existence of nonlinear energy-employment nexus for ASEAN-5 in 1991–2015, this paper shows an initially negative association between energy consumption and employment before turning positive beyond the energy and employment thresholds, portraying a U-shaped energy-employment nexus. Policies implementation may target on controlling energy increase beyond the employment threshold, and promoting employment creation beyond the energy threshold.

Suggested Citation

  • Chung-Khain Wye & Elya Nabila Abdul Bahri & Ishak Yussof & Wei Mao, 2022. "How are energy and employment related? An analysis in ASEAN-5 open economies," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 46(3), pages 201-223, July.
    • Handle: RePEc:taf:rseexx:v:46:y:2022:i:3:p:201-223
    DOI: 10.1080/03796205.2022.2143884
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