Wavelet Analysis of Renewable, Non-renewable Energy Consumption and Environmental Degradation as a Precursor to Economic Growth: Evidence from Malaysia
The present study utilized continuous wavelet power range, and wavelet coherence power range estimations to analyze the relationship among renewable energy consumption, non-renewable energy consumption and environmental degradation by taking about quarterly data for the time of 1997(1) to 2017(4). Moreover, the consequences of wavelet coherence affirm that ENG and CO2 emission have a bi-directional causal association with one another in the medium run and a uni-directional causal relationship where ENC is driving in a short run era. However, we found no proof of a causal relationship in a long and long run period. Finally, the aftereffects of wavelet coherence affirm that RENE and CO2 emission have a bi-directional causal association with one another in short run and a uni-directional causal relationship where CO2 emission is driving in medium run day and age. Nonetheless, we found a proof of a uni-directional causal relationship in a long and long run period where causality is running from renewable energy consumption to environmental degradation in Malaysia.
Keywords: Renewable energy consumption, environmental degradation, continuous wavelet transform, wavelet coherence, Malaysia
JEL Classifications: Q20, Q30, Q56