Dynamic linkages between non‑renewable energy, renewable energy and economic growth through nonlinear ARDL approach: evidence from Malaysia

Rafia, Afroz and Muhibbullah, Md (2022) Dynamic linkages between non‑renewable energy, renewable energy and economic growth through nonlinear ARDL approach: evidence from Malaysia. Environmental Science and Pollution Research. ISSN 0944-1344 E-ISSN 1614-7499

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Abstract

The purpose of this paper is to investigate the links between renewable energy (RE), non-renewable energy (NRE), capital, labour and economic growth, using the nonlinear autoregressive distributive lag (NARDL) model in Malaysia for the period of 1980–2018. The results of NARDL confrm the asymmetric efect of RE and NRE consumption on economic growth in the long run as well as the short run in Malaysia. The fndings also show that in the long and short run, positive shocks of NRE are greater than the positive shocks of RE. It indicates that Malaysia’s economic growth is highly dependent on NRE which is not a good indication as NRE consumption increases carbon dioxide (CO2) emissions in the country. Moreover, the empirical results of this study demonstrated that RE consumption reduction accelerates economic growth, whereas NRE consumption reduction decreases economic growth. It can have claimed that in Malaysia, RE is still more expensive than NRE. In conclusion, this study offered a variety of measures to develop RE to reduce the dependency on NRE consumption.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Economic growth · Malaysia · Renewable energy · NARDL · Asymmetric · Non-renewable energy
Subjects:	H Social Sciences > H Social Sciences (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr Rafia Afroz
Date Deposited:	31 May 2022 11:35
Last Modified:	31 May 2022 11:35
URI:	http://irep.iium.edu.my/id/eprint/98121

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