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Energy subsidy reform and energy sustainability in Malaysia

Author

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  • Husaini, Dzul Hadzwan
  • Lean, Hooi Hooi
  • Puah, Chin-Hong
  • Affizzah, A.M. Dyg
Abstract
The 12th Sustainable Development Goals (SDGs) highlighted the importance of ensuring sustainable consumption and production patterns. Researchers have found that energy subsidies may encourage overconsumption, misuse, and moral hazard problems. Hence, there is a need to rationalize inefficient energy subsidies. Consequently, the Malaysian government has been implementing a subsidy reformation program to improve energy efficiency and reduce fiscal burdens. This study aims to identify and compare the impacts of energy subsidies and oil prices on energy consumption across the agricultural, industrial and service sectors in Malaysia. It is critical for policymakers to better understand the role of energy subsidies in influencing energy consumption, especially the magnitude to which energy subsidies influence energy consumption, in order to structure a subsidy reform strategy which effectively addresses the energy overconsumption issue.

Suggested Citation

  • Husaini, Dzul Hadzwan & Lean, Hooi Hooi & Puah, Chin-Hong & Affizzah, A.M. Dyg, 2023. "Energy subsidy reform and energy sustainability in Malaysia," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 913-927.
    • Handle: RePEc:eee:ecanpo:v:77:y:2023:i:c:p:913-927
    DOI: 10.1016/j.eap.2022.12.013
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    More about this item

    Keywords

    Energy sustainability; Energy subsidies; Oil prices; Output; Time series analysis;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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