Energy subsidy reform and energy sustainability in Malaysia

Dzul Hadzwan Husaini, Hooi Hooi Lean (), Chin-Hong Puah and A.M. Dyg Affizzah

Economic Analysis and Policy, 2023, vol. 77, issue C, 913-927

Abstract: The 12th Sustainable Development Goals (SDGs) highlighted the importance of ensuring sustainable consumption and production patterns. Researchers have found that energy subsidies may encourage overconsumption, misuse, and moral hazard problems. Hence, there is a need to rationalize inefficient energy subsidies. Consequently, the Malaysian government has been implementing a subsidy reformation program to improve energy efficiency and reduce fiscal burdens. This study aims to identify and compare the impacts of energy subsidies and oil prices on energy consumption across the agricultural, industrial and service sectors in Malaysia. It is critical for policymakers to better understand the role of energy subsidies in influencing energy consumption, especially the magnitude to which energy subsidies influence energy consumption, in order to structure a subsidy reform strategy which effectively addresses the energy overconsumption issue.

Keywords: Energy sustainability; Energy subsidies; Oil prices; Output; Time series analysis (search for similar items in EconPapers)
JEL-codes: Q41 Q48 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:77:y:2023:i:c:p:913-927

DOI: 10.1016/j.eap.2022.12.013

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