merged

The Influence of GDP, FDI and Population Growth on Electricity
Consumption in Malaysia
Siti Nurfazira binti Yuseri
Supervisor: Prof. Madya Dr. Azlina Binti Abd Aziz
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
Electricity is known as a secondary energy resource derived from a major nonrenewable
energy resource. However, an increase in electricity consumption has led
to major concerns in most developing countries. This is due to fossil fuels is a nonrenewable
energy that gives negative impact toward environment in Malaysia. This
study examined the factors affecting the use of electricity in Malaysia over the period
of 1980 to 2014 using time series data. Autoregressive Distributed Lag (ARDL)
approached was applied for this purpose. The results showed that gross domestic
product (GDP), foreign direct investment and population growth have a positive impact
in the long run, while only gross domestic product (GDP) and foreign direct investment
have a positive impact on the consumption of electricity in short run. In addition, this
finding lead to important policy recommendation for future renewable energy
development in Malaysia.
Keyword: Electricity consumption, GDP, FDI, population growth, ARDL
1367 | UMT UNDERGRADUATE RESEARCH DAY 2018