Dynamics of energy use, technological innovation, economic growth and trade openness in Malaysia

This study extends the Marshallian demand framework to investigate the effects of TI (technological innovation) on energy use in Malaysia. This extended theoretical frameworks predicts that TI, an exogenous element in the energy demand function, increases energy efficiency and, correspondingly, redu...

Full description

Saved in:
Bibliographic Details
Published in:Energy (Oxford) 2015-10, Vol.90, p.1497-1507
Main Authors: Sohag, Kazi, Begum, Rawshan Ara, Abdullah, Sharifah Mastura Syed, Jaafar, Mokhtar
Format: Article
Language:English
Subjects:
ARDL (autoregressive distributed lag)
Energy use
Malaysia
Technological innovation
Trade openness
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This study extends the Marshallian demand framework to investigate the effects of TI (technological innovation) on energy use in Malaysia. This extended theoretical frameworks predicts that TI, an exogenous element in the energy demand function, increases energy efficiency and, correspondingly, reduces energy consumption at a given level of economic output. Using an ARDL (autoregressive distributed lag) bounds testing approach for the sample period 1985–2012, this study confirms both short- and log-run theoretical predictions. However, controlling for the effect of TI, this study finds that increasing GDP per capita and trade openness produce a rebound effect of TI on energy use. •Technological innovation increases energy efficiency in the long run.•GDP per capita intensifies the energy use in the short run and long run.•Trade openness augments energy use in the long run.
ISSN:0360-5442
DOI:10.1016/j.energy.2015.06.101