Hydropower and potential for interfuel substitution: The case of electricity sector in Malaysia
Mufutau Opeyemi Bello,
Sakiru Solarin and
Yuen Yee Yen
Energy, 2018, vol. 151, issue C, 966-983
The electricity sector in Malaysia is dominated by fossil fuels. This has immensely increased the amount of CO2 emissions and other pollutants. The objective of this paper is to investigate the potential for inter-fuel substitution between the four major fuels of coal, gas, oil, and hydropower that are currently being used in the generation of electricity in Malaysia. Using a translog production function, the study adopted a ridge regression procedure to estimate the parameters. The results suggest a potential for substitution among the fuels. Hydropower is observed to be a substitute for other fossils fuels which is an indication that the country can gradually move towards adopting a cleaner fuel in the generation of electricity. We also extended the analysis to Thailand and China to show the consistency of the method when applied to different countries.
Keywords: Interfuel substitution; Electricity sector; Hydropower; Translog production function; Ridge regression; Malaysia (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:151:y:2018:i:c:p:966-983
Access Statistics for this article
Energy is currently edited by Henrik Lund and Mark J. Kaiser
More articles in Energy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().