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

Authors

  • Abdul Rahim Ridzuan Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kampus Alor Gajah, Km 26 Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia http://orcid.org/0000-0002-1510-895X
  • Aliashim Albani Universiti Malaysia Terengganu
  • Abdul Rais Abdul Latiff Universiti Sains Malaysia
  • Mohamad Idham Md Razak Universiti Teknologi MARA
  • Mohd Haziq Murshidi Universiti Malaysia Sabah

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 EmissionsJEL Classifications: O1, Q2, Q4DOI: https://doi.org/10.32479/ijeep.8140

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Author Biography

Abdul Rahim Ridzuan, Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Kampus Alor Gajah, Km 26 Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia

Index Publication Coordinator & Head of Scholar and Research Unit, Universiti Teknologi MARA (UiTM)

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Published

2019-11-13

How to Cite

Ridzuan, A. R., Albani, A., Abdul Latiff, A. R., Md Razak, M. I., & Murshidi, M. H. (2019). The Impact of Energy Consumption based on Fossil Fuel and Hydroelectricity Generation towards Pollution in Malaysia, Indonesia and Thailand. International Journal of Energy Economics and Policy, 10(1), 215–227. Retrieved from https://econjournals.com/index.php/ijeep/article/view/8140

Issue

Vol. 10 No. 1 (2020)

Section

Articles

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