Energy subsidy reform and energy sustainability in Malaysia

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, moral hazard problems. Hence, there is a need to rationalize inefficient subsidies. Consequently, Malaysian government has been implementing subsidy reformation program improve efficiency reduce fiscal burdens. This study aims identify compare impacts oil prices on across agricultural, industrial service sectors in Malaysia. It critical for policymakers better understand role influencing consumption, especially magnitude which influence order structure reform strategy effectively addresses overconsumption issue. In this study, time series dataset covering years 1978 through 2018 analyzed. ARDL approach Granger causality test were employed determine meaningful statistical evidence revealed four important findings. Firstly, positive relationship with consumption. Secondly, negative significantly interact affect significant moderating effect suggests counteract impact Thirdly, output greatest (positive) And finally, drive higher outputs agricultural sector.