Hydroelectricity Consumption-Economic Growth Relationship and Carbon Dioxide Emission in Malaysia

This study investigates the causal relationship between hydroelectricity consumption, economic growth and CO2 emission in Malaysia by applying the time-series techniques. The major findings for this paper are as follows: (1) Long run relationships are detected between hydroelectricity consumption, economic growth and CO2 emissions. (2) We found a unidirectional causality relationship from hydroelectricity consumption to CO2 emissions without any feedback in the short run. In this manner, Malaysia is advice to carry on more green energy programmes, especially the hydroelectric energy such as Bakun Dam. Building hydroelectric power station and hydroelectric dam can not only can solve the energy security problem, but also reduce greenhouse gas emissions. Moreover, since these hydroelectric development plans managed to enhance the economic growth in the long run, more research and development should be conducted.