Sectoral Energy-CO2 Emissions Using an Environmental Input-Output Framework
Global climate change is an alarming problem nowadays. Weather temperatures have been uncertain because of what many scientists claim is the effect of greenhouse gases, contributed mainly by the energy industry. In Malaysia, the energy industry provides a significant contribution to it economy making up about 20 percent of the GDP. Malaysia is the third largest natural gas exporter in the Asia-Pacific region in 2011 and eleventh in the world (British Petroleum Statistical Review of World Energy, 2014). Malaysia's CO2 emission recorded at 185 million tonnes in 2010 (International Energy Agency, 2012). Mohd Safaai et al. (2011) projected that without any mitigation measures 285.73 million tonnes of CO2 will be released in 2020. In the Copenhagen forum 2009, Malaysia has pledged to reduce 40% of carbon emissions by 2020 compared to the 2005 levels. Motivated by the government efforts, this study will construct environmentally extended input-output framework for Malaysia to obtain the energy-related CO2 emission intensities by sectors. The study is responded to the inadequate of reliable data on Malaysia’s sectoral CO2 emissions and to the growing awareness of the effectiveness of Malaysia climate change policies. This study expanding the current understanding of interactions among economic activities, energy intensities, and CO2 emissions. Results of this study found that Transportation recorded the second highest contributor to CO2 emission, and these findings were different to many other existing studies that found transportation sector as a main contributor to CO2 emission. In addition, results suggest that it is necessary to control environmental problems and encourage the energy use efficiency in the production process, particularly in the Building and construction sector, Transportation, Electricity, gas and water and Agriculture sector in Malaysia The findings will help the policy-makers particularly in Malaysia to develop a strategic plan and tools to manage CO2 emission with respect to climate change in these four sectors.
Begum, R. A., Sohag, K., Abdullah, S. M. S., & Jaafar, M. (2015). CO2 emissions, energy consumption, economic and population growth in Malaysia. Renewable and Sustainable Energy Reviews, 41, 594-601. https://doi.org/10.1016/j.rser.2014.07.205
British Petroleum Statistical Review of World Energy. (2014). London: British Petroleum. https://www.bp.com/content/dam/bp-country/de_de/PDFs/brochures/BP-statistical-review-of-world-energy-2014-full-report.pdf
Carbon Trust Organisation. (2017). Public sector sustainability. https://www.carbontrust.com/
Gemechu, E. D., Butnar, I., Llop, M., & Castells, F. (2014). Economic and environmental effects of CO2 taxation: an input-output analysis for Spain. Journal of Environmental Planning and Management, 57(5), 751-768. https://doi.org/10.1080/09640568.2013.767782
Harun, M., Mat, S. H. C., Fadzim, W. R., Khan, S. J. M., & Noor, M. S. Z. (2018). The effects of fuel subsidy removal on input costs of productions: Leontief input-output price model. International Journal of Supply Chain Management, 7(5), 529-534.
Hassan, S., Othman, Z., & Harun, M. (2014). Ownership structure variation and firm efficiency, Asian Social Science, 10(11), 233-241. https://doi.org/10.5539/ass.v10n11p233
International Energy Agency. (2012) International Energy Outlook 2012: world petroleum and other liquid fuels. Energy Information Administration, Washington.
Jia, J., Gong, Z., Xie, D., Chen, J., & Chen, C. (2018). Analysis of drivers and policy implications of carbon dioxide emissions of industrial energy consumption in an underdeveloped city: The case of Nanchang, China. Journal of Cleaner Production, 183, 843-857. https://doi.org/10.1016/j.jclepro.2018.02.116
Leesombatpiboon, P., & Joutz, F. L. (2010). Sectoral demand for petroleum in Thailand. Energy Economics, 32, 15-25. https://doi.org/10.1016/j.eneco.2010.07.006
Malaysian Energy Information Hub. (2017). Energy Commission of Malaysia. https://www.meih.st.gov.my/statistics/
Mustapa, S. I., & Bekhet, H. A. (2016). Analysis of CO2 emissions reduction in the Malaysian transportation sector: An optimisation approach. Energy Policy, 89, 171-183. https://doi.org/10.1016/j.enpol.2015.11.016
Ong, H. C., Mahlia, T. M. I., & Masjuki, H. H. (2012). A review on energy pattern and policy for transportation sector in Malaysia. Renewable and Sustainable Energy Reviews, 16(1), 532-542. https://doi.org/10.1016/j.rser.2011.08.019
Othman, J., & Jafari, Y. (2013). Identification of the key sectors producing CO2 emissions in Malaysia: Application of input-output analysis (MPRA Paper No. 65192). Germany: University Library of Munich.
Supasa, T., Hsiau, S. S., Lin, S. M., Wongsapai, W., Chang, K. F., & Wu, J. C. (2017). Sustainable energy and CO2 reduction policy in Thailand: An input-output approach from production-and consumption-based perspectives. Energy for Sustainable Development, 41, 36-48. https://doi.org/10.1016/j.esd.2017.08.006
Mohd Safaai, N. S., Zainon Noor, Z., Hashim, H., Ujang, Z., & Talib, J. (2011). Projection of CO2 emissions in Malaysia. Environmental Progress & Sustainable Energy, 30(4), 658-665. https://doi.org/10.1002/ep.10512
Shahbaz, M., Solarin, S. A., Mahmood, H., & Arouri, M. (2013). Does financial development reduce CO2 emissions in Malaysian economy? A time series analysis. Economic Modelling, 35, 145-152. https://doi.org/10.1016/j.econmod.2013.06.037
World Bank. (2014). State and Trends Report Charts Global Growth of Carbon Pricing. https://www.worldbank.org/en/news/feature/2014/05/28/state-trends-report-tracks-global-growth-carbon-pricing
World Bank. (2018). States and Trends of Carbon Pricing 2018. https://openknowledge.worldbank.org/handle/10986/29687
World Input-Output Database. (2015). Eora National IO Table. Retrieved September 10, 2018, from https://www.worldmrio.com/countrywise/
Wu, T. H., Chen, Y. S., Shang, W., & Wu, J. T. (2018). Measuring energy use and CO2 emission performances for APEC economies. Journal of Cleaner Production, 183, 590-601. https://doi.org/10.1016/j.jclepro.2018.02.028
Yildizhan, H. (2018). Energy, exergy utilization and CO2 emission of strawberry production in greenhouse and open field. Energy, 143, 417-423. https://doi.org/10.1016/j.energy.2017.10.139
Ying, L. S., & Harun, M. (2019). Fuel subsidy abolition and performance of the sectors in Malaysia: A computable general equilibrium approach, Malaysian Journal of Economic Studies, 56(2), 303-326. https://doi.org/10.22452/MJES.vol56no2.7
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.