The Impact of Energy Consumption Based on Fossil Fuel and Hydroelectricity Generation Towards Pollution in Malaysia, Indonesia and Thailand

Abstract

This study investigated the effects of energy consumption (ENY) based on fossil fuels and alternative energy with hydroelectricity as its proxy upon pollution, aside from ascertaining if the correlation between income and pollution determined the presence of Environmental Kuznets curve (EKC). In addition, the functions of foreign direct investment (FDI) inflows and trade openness (TO) were probed into so as to generate more precise outcomes of EKC hypothesis. Hence, in order to fulfil the objectives outlined in this study, the Bound estimation method was utilized to examine three developing nations of the Association of South East Asian Nation (ASEAN), which are Malaysia, Indonesia, and Thailand. The main finding of interest retrieved from this paper refers to the EKC hypothesis reflective of Malaysia and Thailand. It was discovered that hydroelectricity favourably lowered the release of carbon emissions in the case of Malaysia, while it insignificantly influenced environmental degradation for Indonesia and Thailand. On the other hand, as anticipated, per capita energy use displayed a significant long-run effect in raising the levels of carbon emission in Indonesia and Thailand. Meanwhile, the FDI inflows seemed to improve the environmental quality only in Malaysia, while deepening in TO among ASEAN-3 nations appeared to successfully minimize issues related to environmental degradation in these countries.

Linking Economic Growth, Urbanization, and Environmental Degradation in China: What Is the Role of Hydroelectricity Consumption?

“…This implies that an upsurge in hydroelectricity aids in mitigating environmental degradation in China. This outcome is consistent with the studies of Solarin et al [ 30 ], Kivyiro and Arminen [ 42 ], Gyamfi et al [ 11 ], and Ridzuan et al [ 41 ] who established a negative linkage between hydroelectricity and environmental deterioration.…”

“…Moreover, following the studies of [17,29], we incorporated the URB into the model. Lastly, we introduced HYDRO into the model following the studies of [11,30,41,42]. The cointegration test may be performed using the F-test on the lagged levels of the variables [43].…”

Fresh Validation of the Low Carbon Development Hypothesis under the EKC Scheme in Portugal, Italy, Greece and Spain

“…In this section, relevant empirical studies support the connection between carbon dioxide emissions, economic growth, urban population, and renewable energy. Recently, scholars like (e.g., Grossman and Krueger [7,8]; Douglas and Selden [9]; Balogh and Jambor [10]; Apergis [11]; Saudi et al [12]; Ridzuan et al [13] used environmental Kuznets curve (EKC) assumptions to evaluate the impact of income per capita, squared income per capita, energy, and international trade on CO 2 emissions. The EKC hypothesis (See Figure 1) considers that there is a direct impact of income per capita on carbon dioxide emission.…”

“…In the same line, the empirical Moreover, the econometric results also showed that the variable of energy consumption presents a positive impact on carbon emissions, and renewable energy is negatively correlated with carbon emissions, as the previous studies. In the same line, the empirical research of Ridzuan et al [13] evaluated the effects of energy consumption, income per capita, squared income per capita, trade openness, and foreign direct investment on carbon emissions by Malaysia, Indonesia, and Thailand. The econometric results with the autoregressive distributed lag-ARDL model, in the long-run, demonstrated that income per capita presents a positive effect on carbon emission by Malaysia and Thailand.…”

The Impacts of Rural Population Growth, Energy Use and Economic Growth on Co2 Emissions

“…The huge use of fossil fuels can cause various forms of visible and serious damage to the environment (Ridzuan et al, 2018;Nada et al, 2014). According to Ridzuan et al (2019), Ridzuan et al (2020a); Ridzuan et al (2020b), Ridzuan et al (2021b), Md Razak et al (2017 and Hezareh et al (2017), energy use rises CO 2 emissions. However, Belke et al (2011) and Marinas et al (2018) argued that energy use should not be reduced as it can disrupt economic growth.…”