The Impact of Energy Consumption based on Fossil Fuel and Hydroelectricity Generation towards Pollution in Malaysia, Indonesia and Thailand

Abdul Rahim Ridzuan, Aliashim Albani, Abdul Rais Abdul Latiff, Mohamad Idham Md Razak and Mohd Haziq Murshidi
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Abdul Rahim Ridzuan: Faculty of Business and Management, Universiti Teknologi MARA, Kampus Alor Gajah, Km 26 Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia,
Aliashim Albani: Universiti Malaysia Terengganu, Malaysia,
Abdul Rais Abdul Latiff: Universiti Sains Malaysia, Malaysia,
Mohamad Idham Md Razak: Universiti Teknologi MARA, Malaysia,
Mohd Haziq Murshidi: Universiti Malaysia Sabah, Malaysia.

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 1, 215-227

Abstract: This study investigated the effects of energy consumption (ENY) based on fossil fuels and alternative energy with hydroelectricity as its proxy upon pollution, aside from ascertaining if the correlation between income and pollution determined the presence of Environmental Kuznets curve (EKC). In addition, the functions of foreign direct investment (FDI) inflows and trade openness (TO) were probed into so as to generate more precise outcomes of EKC hypothesis. Hence, in order to fulfil the objectives outlined in this study, the Bound estimation method was utilized to examine three developing nations of the Association of South East Asian Nation (ASEAN), which are Malaysia, Indonesia, and Thailand. The main finding of interest retrieved from this paper refers to the EKC hypothesis reflective of Malaysia and Thailand. It was discovered that hydroelectricity favourably lowered the release of carbon emissions in the case of Malaysia, while it insignificantly influenced environmental degradation for Indonesia and Thailand. On the other hand, as anticipated, per capita energy use displayed a significant long-run effect in raising the levels of carbon emission in Indonesia and Thailand. Meanwhile, the FDI inflows seemed to improve the environmental quality only in Malaysia, while deepening in TO among ASEAN-3 nations appeared to successfully minimize issues related to environmental degradation in these countries.

Keywords: Energy Consumption; Hydroelectricity; Real Output; Carbon Emissions (search for similar items in EconPapers)
JEL-codes: O1 Q2 Q4 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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