Article,

Pursuing more sustainable energy consumption by analysing sectoral direct and indirect energy use in Malaysia

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Entrepreneurship and Sustainability Issues, 12 (2): 501 To 510 (December 2018)

Abstract

Malaysia is experiencing ever increasing domestic energy consumption. This study is an attempt to analyze the changes in sectoral energy intensities in Malaysia for the period 1995 to 2011. The study quantifies the sectoral total, direct, and indirect energy intensities to track the sectors responsible for increasing energy consumption. The energy input-output model has been applied in this study, and it is a frontier method for examining resource embodiments in goods and services on a sectoral scale that is popular among scholars. The results revealed that both the direct and indirect sectoral energy intensities are important contributors to total sectoral energy intensity. Therefore, for effective efficiency policy, different strategies should be adopted based on a particular sector’s direct and indirect energy intensities features. The sectors with the highest potentials for conservation, which are simultaneously the main consumers of energy and have the highest energy intensities are transport and storage, non-metallic mineral products, chemicals and chemical products, financial intermediation, agriculture, forestry, and fishing, fabricated metal products, and food, beverage and tobacco. By investigating both the direct and the indirect energy usage for sectors in Malaysia, this study contributes to researches done on only the direct sectoral energy requirement in Malaysia.

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