Electricity & Pollution : An Input-Output Analysis of Air Emissions in Malaysia

The electric power industry is playing a crucial role in the economic uplift of Malaysia. Significant growths have been evident in the recent years both in energy supply and its demand. At the same time, the growing demand of electricity in the newly industrialized Malaysia is having negative impacts on the energy sector as well as environment. With a view to examining the pollution implications of electricity generation in the country, we investigate the electric industries. Using an Input-Output approach we analyze data of Malaysian economy for the period 1991-2000 and calculate empirically the air pollution caused by electricity generation. Findings of this study lead us towards a conclusion that a fast growing industrial economy of Malaysia should adopt strategies for renewable energy sources and conservation measures. The paper moves to make a projection for electricity-energy generation for 2020, which suggests rethinking of energy-mixed policy in the 9th Malaysian Development Plan with emphasis on environmental care