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Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis

Empirical researches on the nexus between renewable energy supply and economic growth have been neglected. To address this gap, this study aims to examine the relationship between hydropower energy supply (HES) and economic growth within a multivariate model for the 1978-2017 period. This study util...

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Main Authors: Ahmed Sulub, Yasin, Hamid, Zarinah, Mior Nazri, Mior Nasir
Format: Article
Language:English
English
Published: Cag University, Mesin, Turkey 2020
Subjects:
HD72 Economic growth, development, planning
TD169 Environmental protection
TD201 Water supply for domestic and industrial purposes
Online Access:http://irep.iium.edu.my/79706/7/79706%20Renewable%20Energy%20Supply%20and%20Economic%20Growth.pdf
http://irep.iium.edu.my/79706/8/79706%20Renewable%20Energy%20Supply%20and%20Economic%20Growth%20SCOPUS.pdf
http://irep.iium.edu.my/79706/
https://www.econjournals.com/index.php/ijeep/article/view/8980/5061
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spelling my.iium.irep.797062020-05-20T05:05:24Z http://irep.iium.edu.my/79706/ Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis Ahmed Sulub, Yasin Hamid, Zarinah Mior Nazri, Mior Nasir HD72 Economic growth, development, planning TD169 Environmental protection TD201 Water supply for domestic and industrial purposes Empirical researches on the nexus between renewable energy supply and economic growth have been neglected. To address this gap, this study aims to examine the relationship between hydropower energy supply (HES) and economic growth within a multivariate model for the 1978-2017 period. This study utilized the auto regressive distributive lag (ARDL) bounds approach to testing for cointegration relationship; and the Granger causality test, based on the vector error correction model (VECM) to test for causality. The bounds F-test for cointegration shows that HES, electricity consumption, capital formation and GDP growth share a long-run relationship. Results show that HES has a significant positive impact on economic growth in the short-run. The causality tests yield evidence of unidirectional long-run and short-run causality running from economic growth to HES, suggesting that economic growth is necessary for providing the essential resources for fostering the HES. The existence of cointegration among HES and GDP growth infers that HES will not drift too far away from economic growth in the long-run. Thus, the government needs to ensure a sufficient supply of hydropower energy in the short-run and the long-run. Cag University, Mesin, Turkey 2020 Article PeerReviewed application/pdf en http://irep.iium.edu.my/79706/7/79706%20Renewable%20Energy%20Supply%20and%20Economic%20Growth.pdf application/pdf en http://irep.iium.edu.my/79706/8/79706%20Renewable%20Energy%20Supply%20and%20Economic%20Growth%20SCOPUS.pdf Ahmed Sulub, Yasin and Hamid, Zarinah and Mior Nazri, Mior Nasir (2020) Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis. International Journal of Energy Economics and Policy, 10 (3). pp. 255-264. ISSN 2146-4553 https://www.econjournals.com/index.php/ijeep/article/view/8980/5061 10.32479/ijeep.8980
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
topic HD72 Economic growth, development, planning
TD169 Environmental protection
TD201 Water supply for domestic and industrial purposes
spellingShingle HD72 Economic growth, development, planning
TD169 Environmental protection
TD201 Water supply for domestic and industrial purposes
Ahmed Sulub, Yasin
Hamid, Zarinah
Mior Nazri, Mior Nasir
Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis
description Empirical researches on the nexus between renewable energy supply and economic growth have been neglected. To address this gap, this study aims to examine the relationship between hydropower energy supply (HES) and economic growth within a multivariate model for the 1978-2017 period. This study utilized the auto regressive distributive lag (ARDL) bounds approach to testing for cointegration relationship; and the Granger causality test, based on the vector error correction model (VECM) to test for causality. The bounds F-test for cointegration shows that HES, electricity consumption, capital formation and GDP growth share a long-run relationship. Results show that HES has a significant positive impact on economic growth in the short-run. The causality tests yield evidence of unidirectional long-run and short-run causality running from economic growth to HES, suggesting that economic growth is necessary for providing the essential resources for fostering the HES. The existence of cointegration among HES and GDP growth infers that HES will not drift too far away from economic growth in the long-run. Thus, the government needs to ensure a sufficient supply of hydropower energy in the short-run and the long-run.
format Article
author Ahmed Sulub, Yasin
Hamid, Zarinah
Mior Nazri, Mior Nasir
author_facet Ahmed Sulub, Yasin
Hamid, Zarinah
Mior Nazri, Mior Nasir
author_sort Ahmed Sulub, Yasin
title Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis
title_short Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis
title_full Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis
title_fullStr Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis
title_full_unstemmed Renewable energy supply and economic growth in Malaysia: an application of bounds testing and causality analysis
title_sort renewable energy supply and economic growth in malaysia: an application of bounds testing and causality analysis
publisher Cag University, Mesin, Turkey
publishDate 2020
url http://irep.iium.edu.my/79706/7/79706%20Renewable%20Energy%20Supply%20and%20Economic%20Growth.pdf
http://irep.iium.edu.my/79706/8/79706%20Renewable%20Energy%20Supply%20and%20Economic%20Growth%20SCOPUS.pdf
http://irep.iium.edu.my/79706/
https://www.econjournals.com/index.php/ijeep/article/view/8980/5061
_version_ 1669007551349391360
score 13.211869

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