Green Economy and Social Welfare in Malaysia: ARDL Approach

Abstract

This study tries to ascertain how certain aspects of the green economy perspective relate to Malaysian economic growth using the variables of CO2 emissions, renewable energy consumption, and life expectancy which are representations of social welfare in Malaysia. We take data from the World Bank as a secondary source for the years 2000 to 2020, From our estimation results, We find that the variables we estimate have long-term and short-term correlations such as economic growth and life expectancy and economic growth with renewable energy consumption, and short-term economic expansion has a detrimental impact on life expectancy. However, the use of renewable energy is significantly correlated with economic expansion. This shows that between the two variables, with increasing economic growth, life expectancy will actually decrease, although this occurs in the short term, furthermore with increasing consumption of renewable energy will also increase economic growth in Malaysia.