Exploring the Determinants of Energy Demand in Malaysia: Empirical Analysis

EasyChair Preprint 15516

Abstract

This study delves into Malaysia's energy utilization dynamics, an emerging economy in the ASEAN region. Energy consumption in Malaysia has surged alongside rising per capita income, notably during the shift from a primary-sector-driven economy to an industrialized and urbanized one since 1970. Sustainable resource management, particularly in the energy sector, is crucial for achieving long-term sustainability goals. Using Bound Estimation and annual data from 1985 to 2020, this research employs a comprehensive systems approach, considering economic growth, foreign direct investment, urbanization, governance, and innovation to assess energy determinants in Malaysia. The results highlight economic growth, foreign direct investment, rapid urbanization, and technological advancement as the primary drivers of increased energy usage. Additionally, corruption indirectly influences energy consumption. These findings underscore the necessity for tailored energy policies, with a strong emphasis on promoting alternative energy sources to align with the nation's development goals. Understanding the root causes of Malaysia's escalating energy consumption equips policymakers with valuable insights to formulate sustainable strategies, ensuring steady economic growth while addressing energy-related challenges.

Keyphrases: Bound estimation, FDI, Technology Advancement, energy consumption

@booklet{EasyChair:15516,
  author    = {Ayodele Oluwaseun and Georgescu Nica},
  title     = {Exploring the Determinants of Energy Demand in Malaysia: Empirical Analysis},
  howpublished = {EasyChair Preprint 15516},
  year      = {EasyChair, 2024}}