Energy Use and Environmental Impact of New Alternative Fuel Mix in Electricity Generation in Malaysia

Production of electricity by burning coal, oil, and natural gas produces CO2, SO2, NOx, etc. which act as greenhouse gases and pollutants. This paper examines fuel use, energy production, and the quantities of these gases produced in the Malaysian economy during the years 1991 and 2000. Input-output (Leontief) analysis is used in this study to enable calculation of energy demand and pollution effects throughout the economy. This study also estimates changes in emissions related to changes in fuel mix projected in Vision 2020. It is found that the fuel mix envisioned by the Fuel Diversification Strategy, designed to reduce Malaysia’s dependence on fuel oil and increase its energy security would increase undesired emissions. This study may find use in formulation of energy policy in Malaysia.