Modelling Sectoral Energy Consumption in Malaysia: Assessing the Asymmetric Effects

Economic growth, energy prices, technological innovations, and financial depth all play a vital role in sectoral consumption. Early studies have extensively examined the interactions among these variables, which are important developing policies on However, to date, most estimated consumption linear fashion. If actual relationship is non-linear or asymmetric, then inferences drawn from framework may be misleading. Hence, this study, we employed autoregressive distributed lag (NARDL) approach analyse Malaysian 1978 2016. We found that bounds test of NARDL indicates presence cointegration variables. The key findings include: (1) rise income increases throughout sectors, but does not respond significantly fall income; (2) both decreases prices reduce industrial consumption, residential commercial sectors’ react positively price falls; (3) advancement transportation consumption; (4) an increase decrease credit availability private sectors reacts deepening. Moreover, effects at level were asymmetrical. indicate changes selected macroeconomic variables Granger causality effect Given findings, our study offers empirical support for inclusion non-linearity asymmetric when modelling