The purpose of this paper is to investigate the links between renewable energy (RE), nonrenewable energy (NRE), capital, labour and economic growth, using the Non-linear Auto Regressive Distributive Lag (NARDL) model in Malaysia for the period of 1980-2018. The results of NARDL confirm the asymmetric effect of RE and NRE consumption on the economic growth in the long run as well as short run in Malaysia. The findings also show that in the long and short-run, positive shocks of NRE are greater than the positive shocks of RE. It indicates that Malaysia's economic growth is highly dependent on NRE which is not a good indication as NRE consumption increases carbon dioxide (CO2) emission in the country. Moreover, the empirical results of this study demonstrated that RE consumption reduction accelerates economic growth whereas NRE consumption reduction decreases economic growth. It can have claimed that in Malaysia RE is still more expensive than NRE. In conclusion, this study offered a variety of measures to develop RE to reduce the dependency on NRE consumption.
This paper investigates the link between CO2 emissions, average temperature, planted area, fertiliser use, and rice productivity in Malaysia., covering the period from 1980 to 2018. For this purpose, the study employs the Autoregressive Distributed Lag (ARDL) bounds testing approach and Error Correction Model (ECM) to examine the short-run and long-run relationship among the selected variables of this study. The empirical results obtained from the analysis suggest that carbon dioxide (CO2) emissions and temperature have a long-term favourable influence on rice output in Malaysia but a short-term detrimental impact. Finally, the results obtained from several diagnostic and stability tests are robust, stable, and reliable. The finding of this study could be highly significant for adequate policymaking to reduce the impact of climate change in Malaysia.
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