Comprehensive Outlook on Macroeconomic Determinants for Renewable Energy in Malaysia

Mitigating global warming has been a challenge, and policymakers are responding to this issue by strengthening the commitment enhance renewable energy target from 20 31 percent in 2025 for Malaysia. However, adopting stages based solely on microeconomic factors, such as price of energy, is insufficient. Thus, it essential investigate macroeconomic variables that influence share In detail, study introduces selected indicators, including gross domestic investment, foreign direct trade openness, urbanization, financial development, carbon emissions level, their impact The utilized ARDL (Auto-Regressive-Distributed Lag) estimation annual time series data spanning 50 years observations, beginning 1971 ending 2020. Long-run elasticities show greater economic development urbanization increase proportion energy. contrast, increased liberalization, could reduce use these clean energies. This paper concludes with policy recommendation assist country achieving its goal implementing low-carbon, energy-focused state policy.