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Renewable Energy Use and Its Effects on Environment and Economic Growth: Evidence from Malaysia

Author

Listed:
  • Muhammad Raza

    (Emaan Institute of Management and Sciences, Pakistan,)

  • Ahmed E. Ahmed

    (Department of Administrative and Financial Programs, King Faisal University, Saudi Arabia,)

  • Ali Saleh Alshebami

    (SAP Next-Gen Lab, Plekhanov Russian University of Economics, Moscow, Russia,)

  • Aleksandra G. Polyakova

    (SAP Next-Gen Lab, Plekhanov Russian University of Economics, Moscow, Russia,)

Abstract

The purpose of this study was to analyse the impact of renewable energy use in Malaysia on the environment and economic growth and directing study findings to stimulate developing economies in Arab region to evaluate its economic returns from renewable energy uses. In this study, a set of time series data has been used which is ranging from the year 1989 to 2018. Moreover, the stationary of the data was tested through Augmented-Dickey Fuller (ADF) test. The normality test of the data distribution was also conducted with the help of Jarque Bera test. In addition to the methods, due to the existence of unit roots, an ARDL technique was also incorporated which tested the influence of renewable energy use on the growth and environment of Malaysia. The findings of the study imply that the renewable sources usage in Malaysia was found to have a positive and significant relation on the CO2 emissions in the case of Malaysia. Furthermore, the findings of the study also suggested that there is no significant relation between renewable energy use and GDP. Also, it was identified that there was no long-run influence in the variables and hence a short-run influences were recognised.

Suggested Citation

  • Muhammad Raza & Ahmed E. Ahmed & Ali Saleh Alshebami & Aleksandra G. Polyakova, 2020. "Renewable Energy Use and Its Effects on Environment and Economic Growth: Evidence from Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 50-57.
    • Handle: RePEc:eco:journ2:2020-05-7
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    References listed on IDEAS

    as
    1. Bakirtas, Tahsin & Akpolat, Ahmet Gokce, 2018. "The relationship between energy consumption, urbanization, and economic growth in new emerging-market countries," Energy, Elsevier, vol. 147(C), pages 110-121.
    2. Mun Mun Ahmed & Koji Shimada, 2019. "The Effect of Renewable Energy Consumption on Sustainable Economic Development: Evidence from Emerging and Developing Economies," Energies, MDPI, vol. 12(15), pages 1-15, July.
    3. Wan Syakirah Wan Abdullah & Miszaina Osman & Mohd Zainal Abidin Ab Kadir & Renuga Verayiah, 2019. "The Potential and Status of Renewable Energy Development in Malaysia," Energies, MDPI, vol. 12(12), pages 1-16, June.
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    More about this item

    Keywords

    Renewable Source; CO2 Emission; GDP; Malaysia;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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