Does economic growth in Malaysia depend on disaggregate energy
This study aims to investigate long-run relationship between economic growth and disaggregated energy consumption in Malaysia. Toda-Yamamoto (T-Y), the modified Granger causality test, along with annual disaggregated energy and real GDP growth data from 1971 to 2014 was used in the investigation p...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English English |
| Published: |
Elsevier Ltd
2017
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/57258/ http://irep.iium.edu.my/57258/ http://irep.iium.edu.my/57258/ http://irep.iium.edu.my/57258/1/57258_Does%20economic%20growth_complete.pdf http://irep.iium.edu.my/57258/2/57258_Does%20economic%20growth_SCOPUS.pdf |
| Summary: | This study aims to investigate long-run relationship between economic growth and disaggregated energy
consumption in Malaysia. Toda-Yamamoto (T-Y), the modified Granger causality test, along with annual
disaggregated energy and real GDP growth data from 1971 to 2014 was used in the investigation process. This
paper presents several outcomes; firstly, this paper argues that the Malaysian economy is energy dependent and
sensitive to energy supply shocks. Secondly, the usage of energy inputs in Malaysian economy is found to be
consumed inefficiently meaning that usage of higher energy resources does not contribute the economic growth
significantly, rather causes environmental pollution badly. Thirdly, the finding indicates that economic growth
and environmental pollution through spreading carbon emissions are responsive to each other. In this
circumstance, the Malaysian economy has to find a way to consume the energy inputs efficiently so that
economic growth is improved, while negative externality in the environment is reduced. Therefore, the study
presents significant policy implications in order to improve the energy efficiency and reduce environmental
pollution. |
|---|