Agricultural and Natural Resource Economics

Zuraini Anang · Jaharudin Padli · Noorhaslinda Kulub Abdul Rashid · Roseliza Mat Alipiah · Haslina Musa ·Jurnal Ekonomi Malaysia ·2019

Water becomes a crucial issue in the 21st century because of rising population and increasing development. Water is needed for agriculture, energy production, recreation, and manufacturing. This study investigates the impact of economic indicators and climate change on water demand for 13 states in Malaysia. Using annual data from 2007 to 2015, the panel data approach is used to assess the impact of these determinants on water demand. The dependent variable is water resources, and independent variables comprise real income, total consumption per capita, agriculture sector, population density and climate change. The real income is a nonlinear equation and indicates a threshold in economic development because the welfare of residents and industry will decline after the optimum point due to the shortage of water resources. The results indicate that total consumption per capita, agriculture, and population density have a positive impact on water demand. The agriculture sector exerts high demand on water resources. The climate change is a correct sign that represents an increase in demand for water resources during dry periods and leading to water stress. This fnding is useful for improving the prediction of climate change to managing the water resources sustainably, particularly in the agriculture sector

Md Fauzi Ahmad (Universiti Tun Hussein Onn Malaysia (UTHM)) · Siti Norziah Ismail (Universiti Tun Hussein Onn Malaysia (UTHM)) · Mohd Fahrul Hassan (Universiti Tun Hussein Onn Malaysia (UTHM)) · Chan Shiau Wei (Universiti Tun Hussein Onn Malaysia (UTHM)) · Norhadilah Abdul (Universiti Tun Hussein Onn Malaysia (UTHM)) · Ahmad Nur Aizat Ahmad (Universiti Tun Hussein Onn Malaysia (UTHM)) · Mohd Nasrun Mohd Nawi · Nor Aida Abdul Rahman ·International Journal of Supply Chain Management ·2019

Green Factory is a management tool for eliminate environment burden such as waste, chemical and pollution. Economic development grew too fast has effected major impact to environment. Carbon dioxide, loss of biodiversity, degradation of natural resources, global warming, ozone layer depletion and deforestation have effected on the environment. Based on world statistics, Malaysia has produced 29 million tonnes carbon dioxide and ranked 26th (0.66%) of the 215 countries in the world. 110 world leaders including Malaysia has agreed to work for reducing carbon dioxide gas in the Copenhagen Climate Change Summit 2009. Five main criteria for Green Factory have been identified; (1) Solar power generation systems, (2) Fuel cells system, (3) Cogeneration systems, (4) Air conditioning units and (5) Recycling system. A study was conducted to manufacturing companies that adopted Green Factory practices to assess its their green practices for minimizing environmental problems. The samples were 300 companies in Malaysia. Finally, 20% response rate has been received, with 60 respondents. Based on descriptive result, recycling shows the highest level of practices, followed by solar power cogenerations system, air conditioning units and fuel cells system. This study result shows Green Factory has significant relationship with environment performance (r=0.684, P<0.05) and business performance (r=0.510, P<0.05). Overall, the survey result shows green factory practices has significant impact on Malaysia manufacturing companies. In conclusion, Green Factory can be used as effective tool for improving not only for environment performance but also for business performance.

Moe Shwe Sin · Tai Shzee Yew · Kusairi Mohd Noh ·Marine Resource Economics ·2019

The marine fishery resources in the West Coast of Peninsular Malaysia are overexploited by fishing effort by the trawlers. The encroachment of trawlers to the near-shore fishery and conflict between traditional fishers and trawlers still exists, although a licensing system was imposed by trawl fishery management. The dynamics of fishing effort with various alternative management policies was analyzed, and the proper combination of the management policies was selected in order to control overcapacity by the trawlers and provide sustainable management of the trawl fishing industry. System simulation analysis was carried out to determine effort dynamics and the performance of the industry. The results indicated that, the management policy, including the combination of reducing 50% of licenses issued in 2012 coupled with a decreasing fuel price subsidy and increasing landings charges, could be the proposed management policy for the sustainable management of Zone B trawlers in the West Coast of Peninsular Malaysia.

Kerstin K. Zander · Supriya Mathewa ·Ecological Economics ·2019

Higher temperatures linked to climate change lead to people feeling increasingly heat stressed compromising their health and reducing economic activity. In this paper we assess the potential economic impact of heat stress on working people in urban Malaysia by analysing the loss in productivity that they associate with heat stress. We found that nearly every respondent (99%) from a sample of 514 drawn from an online survey sometimes feels heat stressed and also less productive as a result. The median number of days in a year on which people felt their productivity had been compromised because of heat stress was 29. On those days half of the respondents felt their work capacity had been at least halved. The estimated median annual loss from reduced productivity was 257 €, nearly 10% of respondents' median annual income. Respondents who work in mentally challenging jobs are more affected by heat than those in physically intense jobs. They also receive the highest incomes, so suffer the highest losses. Our research suggests that the real economic costs of heat has probably been under-estimated because most research has so far focused on people working in physically intense outdoor jobs or those performed in very hot environments.

Nurlin Amirudin · Tae-Hyoung · Tommy Gim ·Resources, Conservation and Recycling ·2019

Food waste is a global issue that is currently gaining attention in light of food security problems and related environmental issues. Studies related to household food waste have looked at consumer behavior in attempting to explain household food waste behaviors. However, standing for material infrastructure, food accessibility has been suspected to indirectly impact household food waste behaviors. This study therefore looks at perceived food accessibility, measured in terms of perceived time and perceived effort, and its impact on household food waste. A conceptual model is formed through a review of the literature and data obtained from a survey conducted at two locations in the Klang Valley, Malaysia. The collected data are then analyzed using partial least squares structural equation modeling. Three significant paths are found in the model connecting food waste with effort levels, environmental concern, and price importance.

Mohd Azwan Zainol · Zakaria Abas · Ahmad Shabudin Ariffin ·International Journal of Supply Chain Management ·2019

This paper conceptualizes the innovative supply chain integration and business performance of aquaculture contract farming setting in Malaysia. Based on the SCM philosophy, it highlights three related variables of supply chain integration, namely: external integration with suppliers, external integration with customers and supply chain risks, and technological innovation, and the relation amongst the variables in focus that could produce promising business performance. Hence, ability to conceptualize, observe and give due recognition to the possible relation amongst these variables in question by the prospective aquaculture contract farming participants that could bring about an insightful engagement for the betterment of the aquaculture business performance.

Muhammad Haseeb · Irwan Shah Zainal Abidin · Qazi Muhammad Adnan Hye · Nira Hariyatie Hartani ·International Journal of Energy Economics and Policy ·2019 ·JEL: I31; Q22; Q52

This present study examines the role of renewable energy in influencing economic well-being in Malaysia. We used annual data over the period of 1980–2016 in order to apply recent econometrics. The study used renewable energy and economic growth as a proxy of economic well-being to examine the long run connection between renewable energy and economic well-being. The results of auto regressive distributed bound testing approach confirm the valid long-term connection among renewable energy and economic well-being in Malaysia. Furthermore, the results indicate that renewable energy have significant and positive impact on economic well-being in short and long run. It is therefore recommended that the policymakers are required to focus on the green energy generation sector by increasing renewable energy production from the existing sources.

Fathin Faizah Said · Sharifah Nur Ainn Syed Roslan · Mohd Azlan Shah Zaidi · Mohd Ridzwan Yaakub ·Economies ·2021

A ban on palm oil imports by the European Union has become a problematic issue, especially for palm oil producers’ countries. Oil palm has been widely used in many sub-sectors, and any changes in the production side may affect many sectors that use oil palm as an input factor in their productions. This study explores the chain of the oil palm sector on the other sub-sectors in Malaysia by using a value-added multiplier method and network modeling. The study focuses on the specific oil palm sub-sector and oils and fats sub-sector in the Malaysian economic structure based on the Malaysian Input-Output 2015 Table. Network visualization and all the analyses involving network methods were developed and performed using UCINET and GEPHI software. The value-added multiplier results explained that the net value between output multiplier and import multiplier is vital to depict the real impact of net resources used as an input factor in the oils and fats and oil palm sub-sectors. The high-density value level shows that the Malaysian oil palm sector has high connectivity in the economic system. From the network visualization analysis, the oils and fats sub-sector has a high level of integration with other sectors within the network. Meanwhile, the oil palm sub-sector categorized in the periphery structure group has a low level of integration in the input-output network. This is due to the high value-added demand for oil palm in the oils and fats sub-sector in the manufacturing sector. Overall, most of the sub-sectors in Malaysia are highly interconnected due to the high clustering ratio. Therefore, ensuring sufficient oil palm production is vital for sustainable production of other sub-sectors

Mui-Yin Chin · Chin-Hong Puah · Cia-Ling Teo · Justina Joseph ·International Journal of Energy Economics and Policy ·2018 ·JEL: F18; F43; Q43

In light of the deterioration of environmental quality, this study aims to identify the determinants of CO2 emissions in Malaysia using the autoregressive distributed lag and the decomposition-type threshold methods. This study signifies that economic growth is the main contributor to CO2 emissions which is in line with the theory of the Environmental Kuznets Curve curve. Meanwhile, this study also confirms that vertical intra-industry trade between Malaysia and China together with the bilateral FDI from China to Malaysia are the significant determinants of CO2 emissions in Malaysia. As such, this study suggests that the Malaysian government should monitor the implementation of the green growth strategy to enhance the sustainability of the economic and trade growth without compromising environmental quality

Sallahuddin Hassan ·International Journal of Energy Economics and Policy ·2018 ·JEL: C53; O16; Q41

This study is aimed at exploring the impact of energy consumption, private investment, financial development and economic growth on carbon dioxide (CO2 ) emissions in Malaysia employing the autoregressive distributed lags model for the period 1976-2013. The result reveals the presence of long run association connecting the variables and established that private investment and energy consumption impact positively on CO2 emissions in Malaysia. For that reason, the study recommends the implementation of clean technology by private investors is essential in managing CO2 emissions in Malaysia.

H. Vijith, L. W. Seling · D. Dodge-Wan ·Environment, Development and Sustainability ·2018

Soil loss has been quantified and land area categorized for soil erosion vulnerability in a partially forested subwatershed of the Baram River basin (Sarawak, Malaysia) using Revised Universal Soil Loss Equation, which considers climatic and terrain variables. The quantification of soil loss was achieved by integrating the parameters related to rainfall (R), soils (K), terrain (LS) and land use practices (C). The resultant maps of soil erosion show soil losses ranging from 0 to 1190 t ha−1 year−1 with a mean of 28 t ha−1 year−1 in the 1029 km2 Sungai Patah subwatershed study area. The subwatershed was mapped using ArcGIS into five classes of soil erosion risk vulnerability. Among the five classes identified, very high and critically vulnerable zones show linear distribution in some areas which together constitute 13% of the total study area. High and medium erosion vulnerable zones cover 30 and 19%, respectively. Low erosion risk zones cover 36% of the total area. Mean soil loss assessed for each LULC (land use/land cover) class indicates that barren land with high slopes contributes comparatively high rates of soil loss (343 t ha−1 year−1). Field surveys in the study region have enabled identification of erosion hot spots, such as logging areas, shifting cultivation areas and road construction, which intensely modify the terrain, and explain the linearity of critical and severe erosion risk features. The output of the present study will help to frame appropriate management strategies to minimize erosion through implementation of alternative methods in logging activities and terrain management programs.

Saeed Solaymani ·Environment, Development and Sustainability ·2018

This study attempts to analyze the short- and long-run impacts of the probable change in rainfall and temperature simultaneously on food availability and access to food issues, as the two dimensions of food security, in Malaysia. It uses an integrated method comprising of a stochastic method and a computable general equilibrium model using the latest (2010) input–output table published in 2015. The stochastic method, which relates to the Monte Carlo simulation, provides the probable changes in rainfall and temperature patterns and their probability of occurrence based on historical data of rainfall and temperature and crop productivity. It was found that, simultaneous variation of rainfall and temperature, in both the short- and long-run, contracts the economic performance of Malaysia. Findings also show the negative impact of rainfall–temperature variability, in both time periods, on food availability and access to food due to a reduction in the supply of agricultural products, a commodity inflation pressure and a reduction in household income. Moreover, results suggest that the climate variability shocks lead to a reduction in the consumption and welfare of all household groups, particularly in rural areas.

Zaharah binti Yahya · MarianiAriffin · Sabrina Ho Abdullah ·Resources Policy ·2018

The Malaysian State of Selangor has been blessed with an abundant reserve of granite rocks located in the districts of Kuala Langat, Hulu Selangor, Gombak, and Hulu Langat which supply raw materials to develop physical infrastructures including highway roads, building, airports, and townships particularly in Cyberjaya and Putrajaya and supply raw materials to the buildings of the Klang Valley. An active industry, however, comes with shortcomings related to the atmosphere, hydrosphere, lithosphere and biosphere of the ecosystem. In 2009, there were 314 active quarries in Malaysia of which only 12 practiced the best greening effort. Quarry rehabilitation prevents pollution and leads to a cost-effective measure for sustainable quarrying. At present, there is a need to enhance the existing law and policy to ensure the rehabilitation of quarries. Quarry rehabilitation can strike a balance between the need for development, economic aspect, environment, and social aspects in the long term that produces a sustainable quarrying industry that can benefit the Selangor State Government as well as the Federal Government. Generally, this paper aims to identify factors hindering quarry rehabilitation in Selangor. The specific objective of this research is to identify the present status of quarry rehabilitation implementation and examine what the existing legislative framework provides on quarry rehabilitation. By using a qualitative approach, it focuses on Selangor as a case study. A Doctrinal Approach was used to analyze Primary Legal Documents based on the seven Parameters of Quarry Rehabilitation produced by the World Business Council for Sustainable Development (WBCSD) established in 2011. The seven parameters are a vital tool to ensure legal frameworks and policies related to quarry rehabilitation are effective.

Abu bakar Hamid Danlami · Shri-Dewi Applanaidu · Rabiul Islam ·Environment, Development and Sustainability ·2018

There exists a high global concern in different nations on environmental sustainability especially at the focal stage of increased economic growth and development process due to high level of environmental degradation and pollution. The major aim of this study was to empirically examine how to minimise carbon emissions (CO2) in Malaysia which are mainly caused by energy production, fossil fuel consumption, population density and economic growth. The study adopted the method of autoregressive distributed lag bound testing approach to analyse the data for the period 1971–2011. The study found that economic growth in Malaysia has a direct relationship with CO2 emissions in both the short run and the long run. Similarly, there is a positive relationship between fossil fuel consumption and CO2 emissions over the same period. Population density was found to have positive impacts on CO2 emissions. Contrarily, the relationship between the activities of energy production and pollution is negative in the long run. The study recommends that a targeted GDP growth rate should be set with the consideration to avoid more environmental pollution. In addition, the positive impact of fossil fuel consumption on the environmental pollution implies that there is a need to make and implement policies that will encourage the use of public transportation system more than private transportations. That is, the unnecessary use of private vehicles should be discouraged in order to reduce the extent of fossil fuel consumption.

Abid Rashid Gill · Kuperan K. Viswanathan · Sallahuddin Hassan ·Environment, Development and Sustainability ·2018

This study investigates the presence of environmental kuznets curve (EKC) for green house gases (GHG) measured by CO2 emission in Malaysia for the period 1970 to 2011. The study also examines the potential of the renewable source of energy to contain GHG. The long-run significant positive coefficient of GDP indicates that the GHG are increasing with economic growth while the insignificant coefficient on GDP square rejects the EKC transition. These results indicate a high GDP level for the EKC turning point for Malaysia. Therefore, it can be stated that only economic growth cannot reverse the environmental degradation in Malaysia. The government should have to come up with some policy measures to achieve CO2 emission reduction targets that Malaysia has pledged to achieve in Paris Submit (2015). The renewable energy production is found to have significant negative effect on CO2 emission. So government should focus on the renewable source of energy production and should frame a special policy for renewable energy production.