Abstract
Global warming is a standout amongst the present most critical environmental issues, caused generally by emission of greenhouse gases, for example, carbon dioxide from the consuming of fossil fuels. Emissions of carbon dioxide fluctuate all through nations in Asia. It is progressively perceived that nations must act to advance the more prominent utilization of renewable energy resources as a component of activities looking to relieve environmental change. This paper shows a survey of the energy request situation in Malaysia and Indonesia. In this renewable energy, resources are getting to be attractive for sustainable energy development in Malaysia. It is essential for Malaysia to build the consumption of renewable energy to lessen its reliance on dirty fossil fuels for electricity generation. This paper endeavours to examine the elements influencing renewable electricity consumption (REC) in Malaysia. In particular, our examination means to investigate the long-haul relationship among REC, economic growth, CO2 emanations, foreign direct investment (FDI) and exchange transparency over the period from 1980 to 2015. By utilizing autoregressive distributed lag (ARDL) bounds testing cointegration approach, we locate that financial development and FDI are the real drivers for REC. Exchange transparency, be that as it may, is found to have a negative effect on REC over the long haul. Strangely, the impact of CO2 outflows on REC isn’t critical. In addition, the vector error correction model (VECM) Granger causality test finds the presence of a unidirectional causality relationship running from GDP to REC, affirming the legitimacy of conservation hypothesis in Malaysia. Some significant policy suggestions are likewise talked about. It is accordingly prescribed that the policymakers are required to concentrate on the green energy generation part by expanding renewable energy creation from the current sources.
Highlights
Energy is required in nearly our day-by-day life including agriculture, transportation, media transmission and mechanical exercises that affect the economic development
All the explanatory variables are observed to be huge in clarifying the renewable electricity consumption (REC) over the long haul for Malaysia aside from CO2 emissions
The finding further infers the significance of economic development in boosting REC by expanding its capacity to create technologies identified with renewable electricity in Malaysia
Summary
Energy is required in nearly our day-by-day life including agriculture, transportation, media transmission and mechanical exercises that affect the economic development. The economic development is measure by total national output (GDP) and in Malaysia, GDP is connecting precisely with the energy consumption of the nation (Rabie, 2018). The development in the economy in Malaysia is dependent on a continuous supply of energy. Malaysia is a standout amongst the most creating nations among ASEAN nations by Singapore, with GDP of US$15,400 per capita (PPP premise), and enduring GDP growth of 4.6% in 2009 (IMF, 2010). Malaysian economy grew at 5% in 2005 and in general, energy request is required to increment at a normal rate of 6% per annum (Saidur et al, 2009). In parallel with Malaysia’s quick economic development, last energy consumption grew at
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