THE DETERMINANTS OF RENEWABLE ENERGY CONSUMPTION AND THE DYNAMIC RELATIONSHIPS AMONG RENEWABLE ENERGY, ECONOMIC GROWTH, AND ENVIRONMENTAL QUALITY IN ASEAN-4 COUNTRIES
Economic growth highly depends on energy from conventional sources which is, unfortunately among the major factors that triggers environmental pollution. Energy demand is continuously increasing and eventually may lead to the depletion of resources. Renewable energy is an alternative to accommoda...
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| Format: | Thesis |
| Language: | English |
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| Online Access: | http://umt-ir.umt.edu.my:8080/jspui/bitstream/123456789/17427/1/HD%209502%20.H3%202021-%20Extract.pdf http://umt-ir.umt.edu.my:8080/jspui/bitstream/123456789/17427/2/HD%209502%20.H3%202021-%20Full%20Text.pdf |
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| Summary: | Economic growth highly depends on energy from conventional sources which is,
unfortunately among the major factors that triggers environmental pollution. Energy
demand is continuously increasing and eventually may lead to the depletion of
resources. Renewable energy is an alternative to accommodate the current demand and
it is more environmentally friendly. This analyzes the extent to which determinants
can affect the use of renewable electricity consumption in Malaysia from 1980 until
2014 using Johansen-Juselius co-integration approach. The empirical findings reveal
that GDP per capita and trade openness encourage renewable electricity consumption;
carbon dioxide (CO2) emissions, electricity consumption from fossil fuels and oil
prices have negative implications on renewable electricity consumption. Next, this
study examines the existence of environmental Kuznets curve (EKC) hypothesis by
incorporating hydroelectricity consumption and trade openness in Malaysia from 1980
until 2014 via autoregressive distributed lag bounds testing. GDP was found to be
positively significant in explaining CO2 emissions in the long- and short-run but the
EKC hypothesis cannot be confirmed. The long-run estimates show that
hydroelectricity is insignificant on CO2 emissions while trade openness has positive
impact on the environmental quality. Furthermore, hydroelectricity and trade openness
are positively significant on CO2 emissions in the short-run. Finally, this study
investigates the short- and long-run dynamic causality relationship between renewable electricity consumption, economic growth and environmental quality in ASEAN-4
countries over 35-year period using panel co-integration and Granger causality. The
empirical evidence exhibits unidirectional causality running from renewable
electricity consumption to CO2 emissions, GDP per capita, renewable electricity and
real exports to real imports in the short-run. Additionally, a unidirectional causality
from emissions, income, conventional energy used, real exports and imports to
renewable electricity used in the long-run also exists. In conclusion, there are various
determinants affecting renewable electricity consumption in different ways, and
hydroelectricity consumption is insufficient to reduce pollution in Malaysia.
Moreover, the conservation hypothesis is supported in ASEAN-4 countries. In this
case, government needs to improve energy efficiency and develop suitable policies
related to renewable energy to mitigate climate change. |
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