Energy Consumption In Malaysia Research Articles

Review of the policies and development programs for renewable energy in Malaysia: Progress, achievements and challenges

In 2022, Malaysia was ranked 28th worldwide in terms of its energy oil consumption. Energy consumption in Malaysia has been predominantly reliant on natural gas and coal in both the past and present. Oil and gas in Malaysia are predicted to be depleted in 14 years due to the high energy consumption, especially from petroleum sources. Thus, the Malaysian government aims to expand renewable energy (RE) in the country's energy mix as an alternative source of energy. As of 2022, Malaysia has generated roughly 2% of its electricity from various renewable sources, which is still far from the initial target of reaching 20% RE penetration by 2030. However, since 2017, RE has started to contribute to energy mix generation. Several policies, including an act, have been implemented in Malaysia to achieve the target in RE, but many challenges and difficulties have hindered the progress. Thus, the present study explored the current status and challenges for RE in Malaysia and discussed the effectiveness of the available energy policies and programs. The outcomes are potentially valuable to Malaysian policymakers, industries and researchers to improve their current practices for achieving the initial national RE target by 2030 as well as to move forward towards net zero emissions by 2050. This study provides a crucial roadmap for Malaysia to achieve its RE objectives and contribute significantly to the international transition towards a more environmentally friendly and sustainable future.

ENERGY TRAILS OF TOURISM: ANALYZING THE RELATIONSHIP BETWEEN TOURIST ARRIVALS AND ENERGY CONSUMPTION IN MALAYSIA

This study aims to investigate the long-term relationship between Malaysian tourism, energy consumption, and their association with economic growth, and financial development, using the Autoregressive Distributed Lag (ARDL) method. Utilizing annual data spanning from 1990 to 2020, this research examines how increased international tourist arrivals, economic growth, and financial development contribute to energy consumption in Malaysia. The study's findings reveal that growing tourism escalates energy demands for transportation, accommodation, and leisure activities. Furthermore, economic expansion drives energy usage through business expansion and increased industrial activities. Financial progress facilitates capital accessibility, leading to investments in energy-intensive sectors. In conclusion, to ensure sustainable future energy demand, this study underscores the importance of eco-friendly tourism practices that stimulate economic growth while minimizing emissions. Sustainable economic and financial strategies are also essential.

Analysis of GDP and Capital on Energy Usage

The paper seeks to analyse of GDP and capital on energy usage in Malaysia, China and Pakistan. The data was collected and retrieved from the World Development indicator and Malaysia Energy Information Hub and World Bank from the year 2000 until 2020, been analysed and has employed multiple regression model. The findings show that capital and GDP has positive significant impact on energy consumption in Malaysia. China's energy usage has been positively significantly impacted by economic expansion and capital. In the meantime, Pakistan's energy consumption is positively impacted by economic expansion and capital.

Asymmetric Responses of Energy Consumption in Malaysia: Evidence from Nonlinear ARDL

Many studies have modelled the prices, growth, technology and financial effects on energy consumption in a linear fashion. However, structural changes may trigger asymmetric or nonlinear behaviour in time series analysis. In this paper, we examine the asymmetric influence of economic growth, energy prices, technological innovations and financial development on energy consumption in Malaysia over the period between 1970 and 2018 using a nonlinear ARDL (NARDL) model. The empirical results uncover the existence of asymmetric cointegration relationship between variables. A positive shock in income, energy prices and financial development leads to high energy consumption. Surprisingly, a fall in income does not lower the energy consumption. The results do not provide any evidence of technological effect on energy consumption. In addition, the energy consumption responds more elastically to negative shock than positive shock, which has implications for energy policy. The results also suggest that the short-run and long-run effects are asymmetrical. All variables are found to have asymmetric causal effect on energy consumption in the short-run.

Modelling Sectoral Energy Consumption in Malaysia: Assessing the Asymmetric Effects

Economic growth, energy prices, technological innovations, and financial depth all play a vital role in sectoral energy consumption. Early studies have extensively examined the interactions among these variables, which are important in developing policies on energy consumption. However, to date, most studies have estimated energy consumption in a linear fashion. If the actual relationship is non-linear or asymmetric, then the inferences drawn from a linear framework may be misleading. Hence, in this study, we employed a non-linear autoregressive distributed lag (NARDL) approach to analyse Malaysian sectoral energy consumption from 1978 to 2016. We found that the bounds test of the NARDL indicates the presence of cointegration among the variables. The key findings include: (1) a rise in income increases energy consumption throughout all sectors, but sectoral energy consumption does not respond significantly to a fall in income; (2) both increases and decreases in energy prices reduce industrial energy consumption, but residential and commercial sectors’ energy consumption react positively to price falls; (3) technological advancement increases transportation energy consumption; and (4) both an increase and decrease of credit availability to private sectors reduce industrial energy consumption, but transportation energy consumption reacts positively to financial deepening. Moreover, the effects at the sectoral level were asymmetrical. The findings indicate that the changes in selected macroeconomic variables were found to have a Granger causality effect on sectoral energy consumption. Given these findings, our study offers empirical support for the inclusion of non-linearity or asymmetric effects when modelling sectoral energy consumption.

Hydropower Generation in Malaysia: A Review and Some Notes

The objective of this paper was to discuss the future potential of Hydropower Generation (HG) in Malaysia based on available publications published between 1970 and 2021 in the Scopus database (12 papers) and non-Scopus (3 papers). Out of the 15 papers reviewed, it was found that 73% of papers studied and discussed the economic aspect of the HG in Malaysia, while 27-47% studied and discussed the social and environmental aspects although some could merge with the economic factor. This paper indicated the economic aspect as primary importance in the hydropower studies and construction in their planning processes until full implementation of this Renewable Energy (RE) in Malaysia. This analysis shows that Large (> 10 MW) Hydropower System (HPS) papers only covered 31% of the 12 papers (discarding the 2 unspecified papers) reviewed in this study, while the rest (69%) covered mostly Micro (< 100 kW) HPS (46%), followed by Mini (< 1 MW), Small (< 10 MW), and Pico (< 5 kW) HPSs. It is almost certain, the Micro HPS or lower capacities of HPS hold the bright future in the reduced costs of energy consumption in Malaysia with special reference to economic factors that would boost the social development the betterment of well-being of the nation.

Solar photovoltaic as a means to sustainable energy consumption in Malaysia: the role of knowledge and price value

ABSTRACT Despite various initiatives from the government, merely two per cent of Malaysia’s electricity is produced by renewable energy sources including solar panels. Currently, little is known about the predictors for households’ behavioral intention of utilizing solar photovoltaic systems in Malaysia. Thus, this study aims to investigate the role of knowledge and price value in affecting the adoption of solar system among Malaysian households, based on the Unified theory of acceptance and the use of technology. Results based on a quantitative survey indicated that knowledge affects effort expectancy, social influence, and facilitating conditions positively. Meanwhile, the price value had a direct effect on performance expectancy, effort expectancy, social influence, and facilitating conditions. Additionally, performance expectancy, effort expectancy, social influence, and facilitating conditions were all positively related to behavioral intention. This study provides valuable references for Malaysian government to promote the use of solar energy.

DETERMINANTS OF ENERGY CONSUMPTION IN NEWLY INDUSTRIALISED COUNTRIES OF ASIA

This study focuses on identifying the factors that lead to energy consumption in select newly industrialized countries of Asia such as China, India, Indonesia, Malaysia, Philippines and Thailand. GDP, Exchange rate, industrialization, urbanization and trade openness are the select factors identified and such data is obtained for a period from 1980 to 2018. To check for stationarity, ADF unit root test and PP unit root test is employed where all variables are found to be stationary at first difference. OLS regression is applied to identify which factor has an impact on energy consumption. Besides, Johansen cointegration test to establish long run relationship and VECM is employed, where all variables were found to be integrated in the long run however VECM indicated that for China and Malaysia energy consumption is able to achieve equilibrium after a shock in the previous period. To determine causal links between variables, Toda Yamamoto Causality test is applied. Results indicate that industrialization, exchange rate, financial development and trade openness causes energy consumption in China. However, in India and Thailand only industrialization causes energy consumption. GDP causes energy consumption in Indonesia and trade openness causes energy consumption in Malaysia.

An application of TPB constructs on energy-saving behavioural intention among university office building occupants: a pilot study in Malaysian tropical climate

Buildings account for a vast amount of energy consumption in Malaysia. Occupant behaviour patterns are a major factor affecting the energy performance of buildings. Identifying energy waste due to occupant behaviour will allow stakeholders to develop effective strategies to curtail energy consumption in buildings. The purpose of this study was to investigate the effects of theory of planned behaviour constructs on energy-saving behavioural intention among university building occupants. Data from a survey questionnaire was collected from 292 occupants (students and staff) at one case study building at a public university in Malaysia. Data analysed using the structural equation model showed that attitude and perception significantly influence occupants’ energy-saving behaviour. Our results indicate that respondents showed moderate behaviour on three sub-constructs: duration of equipment use, frequency of equipment use, and energy saving practice. The current pilot study provides a basis for an improved theoretical framework that considers other variables to be applied in a larger scale study. The implications for behaviour models in terms of policy recommendations and suggestions for occupant engagement campaigns are discussed.

Nexus among Carbon Emissions, Real Output and Energy Consumption in Malaysia and South Korea: New Evidence using Non-Linear Autoregressive Distributed Lag (NARDL) Analysis

Nexus among Carbon Emissions, Real Output and Energy Consumption in Malaysia and South Korea: New Evidence using Non-Linear Autoregressive Distributed Lag (NARDL) Analysis

Environmental Kuznets curve and energy consumption in Malaysia: A cointegration approach

ABSTRACTThis study examines the long- and short-run relationship between carbon dioxide (CO2) emissions, economic growth, energy consumption, foreign trade, and urbanization based on the Environmental Kuznets Curve (EKC) hypothesis in Malaysia for the period 1980–2008. This study employs the Autoregressive Distributed Lag (ARDL) methodology for empirical analysis. The results obtained suggest the existence of three forms of long-run relationships among variables when CO2 emissions, foreign trade, and urbanization are the dependent variables. The long-run results support the EKC hypothesis, which assumes an inverted U-shaped relationship between income and environmental degradation. Moreover, both energy consumption and urbanization are found to have positive effects on CO2 emissions in the long run, while trade has a negative effect on CO2 emissions in both short and long runs. The stability of the variables in the estimated model is also examined. Results suggest that the estimated model is stable over the study period.

A survey of energy conservation and management options for Malaysia

ABSTRACTThe electrical energy consumption in Malaysia has increased sharply in the past few years, and modern energy-efficient technologies are desperately needed for the national energy policy. This article presents a comprehensive picture of the current status of energy consumption and various energy conservation options viable for the Malaysian environment. A detailed survey is made to assess the consumption pattern and the existing techniques for energy efficiency. Based on the survey, the feasibility of improving the available systems and adopting new programs in different sectors is investigated. The proposed options are then categorized into four main sectors such as building, industrial, electrical and transportation. The study reveals the fact that the energy conservation policy of the country has been fairly improved in the last ten years. However the country has to pay more attention to this area and make urgent measures to adopt more energy-efficient technologies in various sectors.

Long-run relationship between sectoral productivity and energy consumption in Malaysia: An aggregated and disaggregated viewpoint

This paper investigates the causal relationship between energy consumption and economic productivity in Malaysia at both aggregated and disaggregated levels. The investigation utilises total and sectoral (industrial and manufacturing) productivity growth during the 1971–2012 period using the modified Granger causality test proposed by Toda and Yamamoto [1] within a multivariate framework. The economy of Malaysia was found to be energy dependent at aggregated and disaggregated levels of national and sectoral economic growth. However, at disaggregate level, inefficient energy use is particularly identified with electricity and coal consumption patterns and their Granger caused negative effects upon GDP (Gross Domestic Product) and manufacturing growth. These findings suggest that policies should focus more on improving energy efficiency and energy saving. Furthermore, since emissions are found to have a close relationship to economic output at national and sectoral levels green technologies are of a highest necessity.

The Malaysian Energy Scenario and the Need for a SCADA System

There is a need to ensure efficient utilization and diversification of energy sources while minimizing its waste. The electrical energy consumption in Malaysia has increased sharply in the past few years, and modern energy-efficient technologies are desperately needed for the national energy policy. The development of Supervisory Control and Data Acquisition (SCADA) systems is essential to ensure smooth operation of any energy system. This article outlines the present status of energy utilization in Malaysia and introduces the SCADA system as one of the promising energy management tools for the future.

Building Energy Consumption in Malaysia: An Overview

Buildings consume up to 40% of the total global energy. By the year 2030, the consumption is expected to increase to 50%. In Malaysia, buildings consume a total of 48% of the electricity generated in the country. Commercial buildings consume up to 38,645 Giga watts (GWh) while Residential buildings consume 24,709 Gwh. Demand for electricity in the country is expected to rise from 91,539 GWh in the year 2007 to 108,732 GWh in 2011. By the year 2020, the energy demand in Malaysia is expected to reach 116 Million tons of oil equivalents (Mtoe). Carbon dioxide (CO2) emission in the country has increased by 221% ,which lists the nation at 26th among the top 30 greenhouse gas emitters in the world. Literature studies indicate more than 50% of this energy is used in buildings for occupants comfort (air conditioning and refrigeration). Energy consumptions by residential occupants can be minimized if energy usage is considered. This paper aimed at reviewing some literatures on energy consumption in the residential buildings in Malaysia and suggests ways of improving the energy usage by the occupants.

Dynamic impact of household consumption on its CO2 emissions in Malaysia

This article aims to measure the dynamic impact of household consumption (final household consumption expenditure, LHC) on CO2 emission from household’s energy consumption in Malaysia from 1971 to 2010. The estimation of autoregressive distributed lag (ARDL) bounds test confirms a non-monotonic relationship between LHC and residential CO2 emission. In the long run, there is a positive relationship between LHC and CO2 emission as well as a negative relationship between quadratic forms of LHC and CO2 emission which indicates the existence of an inverted U-shaped relationship between these two variables. The analysis also found a similar relationship in both the short and long run. To confirm the non-monotonous relationship, the U test of Sasabuchi–Lind–Mehlum (2010) approach has followed to obtain the sufficient conditions for the existence of inverted U relationship. Moreover, the U test of Sasabuchi–Lind–Mehlum (2010) found that CO2 emission increases with increasing LHC up to 6.5 units, but it declines with an additional increase of LHC which is also found by the ARDL model. However, the existence of environmental Kuznets curve implies that in the long run, household CO2 emission declines with the additional increase of household consumption in the Malaysian economy.

The Relationship Between Energy Consumption and Economic Growth

Using a neo-classical one-sector aggregate production where energy is used as one inputs, the paper develops a vector error-correction (VEC) model to test for the existence and direction of causality between output growth and energy consumption in Malaysia. Using the Johansen co-integration technique, the empirical findings indicate that the long-run movements of output and energy do not exist by one co-integrating vector. Then using a VEC specification, the short-run dynamics of the variables indicate that Granger-causality is not running in both directions between output growth and energy consumption. Hence, those findings conform the presence of “neutral hypothesis theory” which imply Malaysia’s economic growth is not dependent highly upon energy consumption, and energy cannot be considered as a limiting factor to output growth in Malaysia.

Are shocks to disaggregated energy consumption in Malaysia permanent or temporary? Evidence from LM unit root tests with structural breaks

Abstract The objective of this paper is to examine whether energy consumption in Malaysia, disaggregated by sector and type, is stationary or contains a unit root. To realize our objective we apply the Lagrange multiplier (LM) family of unit root tests with up to two structural breaks. Depending on the decision rule for selecting between results in the no-break, one-break and two-break cases, we find that energy consumption is stationary for between 50 per cent and 70 per cent of the disaggregated energy series and between 25 per cent and 50 per cent of sectors. Implications for the Malaysian government's attempts to reduce fossil fuel consumption are discussed.

Towards greener environment: Energy efficient pathways for the transportation sector in Malaysia

Transportation sector is the second most energy consuming sector after industrial sector, accounting for 40% of total energy consumption in Malaysia. The transportation sector is one of the most energy intensive sectors in the country and relies primarily on petroleum products, which in total account for nearly 98% of the total consumption in the sector. Since it is heavily reliant on petroleum based fuels, the sector contributes significantly to the greenhouse gas (GHG) emissions. The need to reduce the greenhouse gas emission is paramount as Malaysia at Conference of the Parties (COP15) pledged to reduce its carbon intensity by 40% by 2020 from 2005 level subject to availability of technology and finance. Transport sector will be among the first sectors that need to be addressed to achieve this goal, as two-thirds of the emissions come from fuel combustion in transport sector. This paper will analyse the factors influencing the transport sector's growth and energy consumption trends and discuss the key issues and challenges for greener environment and sustainable transportation in Malaysia. The paper will also discuss the policy and strategic options aimed towards energy efficient pathways in Malaysia.

Financial development and energy consumption nexus in Malaysia: A multivariate time series analysis

Despite a bourgeoning literature on the existence of long run relationship between consumption of energy and economic growth, results on the direction of causality so far, remain elusive. A growing economy needs more energy, which is exacerbated by growing population. Evidence suggests that financial development can reduce energy use by increasing energy efficiency. Economic growth and energy consumption in Malaysia have been rising in tandem over the past several years. The three public policy objectives of Malaysia are: economic progress, population growth and financial development. It is of interest to the policymakers to understand the dynamic interrelation among the stated objectives. The paper explores the existence of a long run relation among energy use, aggregate production, financial development and population in Malaysia; and causality using the Vector Error Correction Model (VECM). The results suggest that energy consumption is influenced by economic growth and financial development, both in the short and the long run, but the population–energy relation holds only in the long run. The findings have important policy implications for balancing economic growth vis-à-vis energy consumption for Malaysia, as well as other emerging nations.