Role of energy consumption on the environmental impact of sectoral growth in Malaysia

Although some studies have posited that sectoral growth could influence environmental pollution through energy consumption, the issue has not been explicitly and empirically investigated in the carbon-neutrality literature. Hence, this analysis fills the gap in the extant literature by employing the...

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Main Authors: Ehigiamusoe, Kizito Uyi, Ramakrishnan, Suresh, Lean, Hooi Hooi, Somasundram, Sotheeswari
Format: Article
Language:English
Published: SAGE Publications Inc. 2023
Subjects:
Online Access:http://eprints.utm.my/106719/1/SureshRamakrishnan2023_RoleofEnergyConsumptionontheEnvironmental.pdf
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author Ehigiamusoe, Kizito Uyi
Ramakrishnan, Suresh
Lean, Hooi Hooi
Somasundram, Sotheeswari
author_facet Ehigiamusoe, Kizito Uyi
Ramakrishnan, Suresh
Lean, Hooi Hooi
Somasundram, Sotheeswari
author_sort Ehigiamusoe, Kizito Uyi
collection ePrints
description Although some studies have posited that sectoral growth could influence environmental pollution through energy consumption, the issue has not been explicitly and empirically investigated in the carbon-neutrality literature. Hence, this analysis fills the gap in the extant literature by employing the interaction models to ascertain the moderating role of energy consumption on the environmental impacts of the industrial, agricultural, financial, and service sectors in Malaysia. It also analyzes the marginal effects of sectoral growth on environmental pollution (i.e., ecological footprint and carbon emissions) at various levels of energy consumption. The Autoregressive Distributed lag technique utilized in this study found that the variables are cointegrated. The empirical estimations reveal that energy consumption plays a harmful moderating role on the impacts of the industrial and financial sectors on environmental pollution but does not aggravate the environmental impacts of the agricultural and service sectors. Besides, the marginal effects of the industrial and financial sectors on environmental pollution increase as the level of energy consumption rises in Malaysia. Based on the findings, this study highlights the policy implications and options.
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spelling utm.eprints-1067192024-07-20T01:51:49Z http://eprints.utm.my/106719/ Role of energy consumption on the environmental impact of sectoral growth in Malaysia Ehigiamusoe, Kizito Uyi Ramakrishnan, Suresh Lean, Hooi Hooi Somasundram, Sotheeswari HD Industries. Land use. Labor Although some studies have posited that sectoral growth could influence environmental pollution through energy consumption, the issue has not been explicitly and empirically investigated in the carbon-neutrality literature. Hence, this analysis fills the gap in the extant literature by employing the interaction models to ascertain the moderating role of energy consumption on the environmental impacts of the industrial, agricultural, financial, and service sectors in Malaysia. It also analyzes the marginal effects of sectoral growth on environmental pollution (i.e., ecological footprint and carbon emissions) at various levels of energy consumption. The Autoregressive Distributed lag technique utilized in this study found that the variables are cointegrated. The empirical estimations reveal that energy consumption plays a harmful moderating role on the impacts of the industrial and financial sectors on environmental pollution but does not aggravate the environmental impacts of the agricultural and service sectors. Besides, the marginal effects of the industrial and financial sectors on environmental pollution increase as the level of energy consumption rises in Malaysia. Based on the findings, this study highlights the policy implications and options. SAGE Publications Inc. 2023 Article PeerReviewed application/pdf en http://eprints.utm.my/106719/1/SureshRamakrishnan2023_RoleofEnergyConsumptionontheEnvironmental.pdf Ehigiamusoe, Kizito Uyi and Ramakrishnan, Suresh and Lean, Hooi Hooi and Somasundram, Sotheeswari (2023) Role of energy consumption on the environmental impact of sectoral growth in Malaysia. SAGE Open, 13 (3). pp. 1-17. ISSN 2158-2440 http://dx.doi.org/10.1177/21582440231184044 DOI:10.1177/21582440231184044
spellingShingle HD Industries. Land use. Labor
Ehigiamusoe, Kizito Uyi
Ramakrishnan, Suresh
Lean, Hooi Hooi
Somasundram, Sotheeswari
Role of energy consumption on the environmental impact of sectoral growth in Malaysia
title Role of energy consumption on the environmental impact of sectoral growth in Malaysia
title_full Role of energy consumption on the environmental impact of sectoral growth in Malaysia
title_fullStr Role of energy consumption on the environmental impact of sectoral growth in Malaysia
title_full_unstemmed Role of energy consumption on the environmental impact of sectoral growth in Malaysia
title_short Role of energy consumption on the environmental impact of sectoral growth in Malaysia
title_sort role of energy consumption on the environmental impact of sectoral growth in malaysia
topic HD Industries. Land use. Labor
url http://eprints.utm.my/106719/1/SureshRamakrishnan2023_RoleofEnergyConsumptionontheEnvironmental.pdf
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