Renewable Energy Use and Its Effects on Environment and Economic Growth: Evidence from Malaysia


  • Muhammad Raza
  • Ahmed E. Ahmed
  • Ali Saleh Alshebami
  • Aleksandra G. Polyakova


The purpose of this study was to analyse the impact of renewable energy use in Malaysia on the environment and economic growth and directing study findings to stimulate developing economies in Arab region to evaluate its economic returns from renewable energy uses. In this study, a set of time series data has been used which is ranging from the year 1989-2018. Moreover, the stationary of the data was tested through Augmented-Dickey Fuller (ADF) test. The normality test of the data distribution was also conducted with the help of Jarque Bera test. In addition to the methods, due to the existence of unit roots, an ARDL technique was also incorporated which tested the influence of renewable energy use on the growth and environment of Malaysia. The findings of the study imply that the renewable sources usage in Malaysia was found to have a positive and significant relation on the CO2 emissions in the case of Malaysia. Furthermore, the findings of the study also suggested that there is no significant relation between renewable energy use and GDP. Also, it was identified that there was no long-run influence in the variables and hence a short-run influences were recognised.

Keywords: Renewable Source, CO2 Emission, GDP, Malaysia

JEL Classifications: Q20, F63



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How to Cite

Raza, M., Ahmed, A. E., Alshebami, A. S., & Polyakova, A. G. (2020). Renewable Energy Use and Its Effects on Environment and Economic Growth: Evidence from Malaysia. International Journal of Energy Economics and Policy, 10(5), 50–57. Retrieved from