Assessing the Key Determinants of Energy Consumption in Malaysia over Four Decades (1980–2022): A Multivariate Regression Analysis

This study empirically investigates the effects of selected macroeconomic factors—GDP per capita, energy prices, industrial value-added share, transport services for commercial trade (exports and imports), and urbanization—on energy consumption in Malaysia from 1980 to 2022. The key aim is to quantify the extent to which these macroeconomic factors explain variations in national energy usage across four decades.
The regression results, supported by diagnostic tests, indicate that only GDP per capita and industrial sector share exert a positive and statistically significant effect on energy consumption in Malaysia. This outcome lends support to the Kaya identity framework, emphasizing the integral role of energy utilization in driving economic growth and industrial expansion.
Therefore, Malaysia policy efforts should focus on improving industrial energy efficiency, promoting renewable energy adoption, and facilitating structural transformation toward less energy-intensive sectors. Such measures are essential to ensure that economic growth remains sustainable while mitigating excessive increases in national energy demand.

Energy consumption, GDP per capita, Energy prices, Industrial share, Transport services for commercial trade, Urbanization, Regression analysis

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