Citation

Goh, Han Hwa and Chang, Shu Hong (2026) Unlocking the Path to Sustainable Energy: An Analysis of Factors Influencing Renewable Energy Consumption in Malaysia. Sustainability, 18 (11). p. 5648. ISSN 2071-1050

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Abstract

The paper seeks to determine whether renewable energy is a future pathway for society or rather a temporary stage leading towards sustainable sources of energy. It evaluates the factors that affect the use of renewable energy in Malaysia through modelling their longterm relationship and short-term causalities. Time-series data collected from 1970 to 2021 is used in the Johansen cointegration test and Vector Error Correction Model (VECM) to determine the association among renewable energy consumption, per capita GDP, foreign direct investments (FDI), carbon dioxide (CO2) emissions, oil prices, trade openness, and urbanisation. There is evidence of a strong positive long-term association between renewable energy consumption and per capita GDP. However, there is evidence of a negative long-term relationship between renewable energy and FDI, CO2 emissions, oil prices, and urbanisation. There is a positive relationship between renewable energy consumption and trade openness in the long term. In addition, short-term causality analysis shows the existence of a feedback loop between renewable energy consumption, economic growth, and FDI. Overall, the paper provides empirical evidence for the carbon-neutral target set by Malaysia in 2050.

Item Type:	Article
Uncontrolled Keywords:	Macroeconomic determinants, urbanisation, Malaysia
Subjects:	H Social Sciences > HC Economic History and Conditions > HC94-1085 By region or country
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	02 Jul 2026 02:00
Last Modified:	02 Jul 2026 02:00
URII:	http://shdl.mmu.edu.my/id/eprint/16198

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