The effect of energy consumption, energy intensity and fuel consumption towards carbon dioxide (CO2 ) emission in Malaysia

• Main Author: Farah Liyana Muhammad
• Format: text
• Language: English
• Published: 2023
• Subjects: ENERGY INTENSITY; FUEL CONSUMPTION; energy consumption,

A greenhouses gas (GHG) is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. Malaysia is a developing country where its growing population and expansion of economic activities especially in the manufacturing and energy sector have been the major drivers for the increasing demand for energy supply. Human actions in particular those involving burning of fossil fuels and biomass that give impact to the carbon dioxide emission (CO2 ) where there is increasing rapidly over the past few decades. The rise in the emission of carbon dioxide is caused by the energy sectors. This study focused the effect of energy consumption, energy intensity and fuel consumption towards carbon dioxide emissions in Malaysia. The data is obtained from Malaysia Central Bank, Malaysia Energy Information Hub, Department of Statistic Malaysia and World Bank for the beginning 1969 to 2018. Thus, unbalanced time series data are applied for the tests which cover pooled ordinary least square (OLS). The unit root test that is based on Augmented Dickey-Fuller (ADF) regressions, and Kwiatkowski–Phillips–Schmidt–Shin (KPSS) tests are applied for testing a null hypothesis that an observable time series is stationary around a deterministic trend (i.e. trend-stationary) against the alternative of a unit root.The significant findings show that energy consumption, energy intensitu and fuel consumption have impact towards the carbon dioxide (CO2 ) emission with positive relationship with value less than 5%. In overall, independent variablesis affected to the CO2 emission in the energy sector business performance. Considering the significance of variables, future studies can be carried out to focus on other industry sectors to develop a more comprehensive framework to investigate the impact and relationship towards the environmental issue that can help industry people, policy maker and society to reduce the environmental problems especially in Malaysia.