Energy Security in Malaysia: Magnitude and the Economic Effects

Malaysian Journal of Economic Studies (Volume 51, No. 2, 2014, Pages 167 to 181)

15 Pages Posted: 20 Jun 2015

See all articles by Ismail Soile

Ismail Soile

University of Lagos; University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP)

Date Written: December 1, 2014

Abstract

The study applies key indicators of the energy security vulnerability index to examine the sensitivity and vulnerability of the Malaysian economy to energy supply disruptions and further test the potential impact of this energy supply disruption indicators on major economic indices such as the GDP and trade balance. The results from the analysis of the historical data and future projections of Malaysia’s primary energy supply portfolios suggest that Malaysia exhibits a highly diversified energy portfolio with an inclination towards reduction if the present trend is not checked. The estimated vulnerability index also indicates that the direct impact of oil supply disruptions on the economy of Malaysia is high compared to coal. The dominance of gas in electricity generation also implies a relatively low carbon-free fuel portfolio. The implication is that Malaysia has been increasing GDP with less energy import dependency and more energy diversification but with less carbon-free portfolios – a case of environmentally non-sustainable growth.

Keywords: Energy security, energy supply, GDP, sustainable growth

JEL Classification: Q40, Q42

Suggested Citation

Soile, Ismail, Energy Security in Malaysia: Magnitude and the Economic Effects (December 1, 2014). Malaysian Journal of Economic Studies (Volume 51, No. 2, 2014, Pages 167 to 181) . Available at SSRN: https://ssrn.com/abstract=2620970

Ismail Soile (Contact Author)

University of Lagos ( email )

Akoka
PMB 4491
Akoka, Lagos State 00234
Nigeria
+2348076184184 (Phone)

University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP) ( email )

Nethergate
Dundee, Scotland DD1 4HN
United Kingdom

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