Agricultural and Natural Resource Economics

Muralitharan Paramasua · Evelyn S. Devadason · Pardis Moslemzadeh Tehrani ·Institutions and Economies ·2019 ·JEL: H70; P48; P45

Environmental regulation is a key driver for the growth of environmental goods and services (EGS), while trade facilitates the diffusion of these goods and services. There has been no shortage of initiatives to develop the EGS sector in Malaysia.However, some policy (non-market) failures are already observed in the governance of this sector. This paper identifies the inadequacies in the regulatory framework (environmental institutions and laws) for creating an enabling environment for the EGS sector. The paper also reviews the trade direction for EGS and delineates concerns related to the sectoral approach of policy making for the sector. The findings from the documentary analyses suggest that the laws and policies related to the EGS are fragmented as they come under the purview of different agencies. As a result of this regulatory incoherence, the coordination and enforcement are weak leading to low uptake of EGS. The absence of a national policy for EGS also obscures the trade direction for this sector. The policy priority and generous support accorded to the renewable energy segment, more specifically, are also a concern given the limited and uncertain role that this segment is expected to play in global energy use.

Bee Hui Soh · Ghee-Thean Lim · Soo Y Chua ·Malaysian Journal of Economic Studies ·2021 ·JEL: B27, F14, O13, Q17, Q22

Malaysia, one of the global major fish producers, has highly traded fisheries products given its many water bodies. Nonetheless, it faces a serious fish trade deficit, implying that the Malaysian fisheries sector might lose its competitiveness in the global market. This paper adopts a modified constant market share (CMS) analysis, which incorporates a net-share approach index and geometric framework, to measure the export competitiveness of the Malaysian fisheries sector. The findings reveal that half of the fisheries products exhibit optimistic export competitiveness. Malaysia reflects the strongest competitiveness in exporting frozen fish and the least competitiveness in the export of crustaceans. Additional effort and attention on those less competitive groups of aquatic invertebrates, live fish and crustaceans are required to improve the export performance. Application of the modified approach is highly proposed as it is not only a simple measurement that gives relatively more accurate results but also succeeds to overcome inconsistency in the traditional approach. The findings provide evidence of unrealised fish export potential regarding product categories, which helps policymakers, traders and marketers to develop their long-term strategic plans and enhance the export competitiveness of the fisheries sector in Malaysia.

Woei Chyuan Wong · Abd Halim Ahmad · Shamsul Bahrain Mohamed-Arshad · Sabariah Nordin · Azira Abdul Adzis ·Malaysian Journal of Economic Studies ·2022 ·JEL: G32

This paper examines the determinants of Malaysian listed firms’ environmental, social and governance (ESG) performance during the period 2005–2018. We focus on individual firms’ continuous efforts to improve their ESG scores once they are ESG rated. Panel fixed effect results reveal that the number of years since a firm was first included in Bloomberg’s ESG score is positive and significantly related to its ESG performance. We interpret this as evidence of firms’ deliberate efforts to improve their ESG scores once they fall under the radar of a third-party ESG rating agency. This finding underscores the importance of third-party rating agency in fostering greater corporate sustainability. We contribute to the literature that posits that ESG third-party rating agency can lead to higher level of ESG practices of the rated firms.

Helena Varkkey · Adam Tyson · Shofwan Al Banna Choiruzzad ·Forest Policy and Economics ·2018

Intensification and expansion are two essential tenets of commercial agriculture. This paper analyses trends of intensification and expansion at the national level, particularly in the oil palm sector in Indonesia and Malaysia. Despite similar starting points and also comparable rates of increasing productivity and profit in this sector, both countries have developed almost opposite trajectories of land use. While both intensification and expansion has occurred in these countries, national indicators show that Malaysia has largely pursued intensification while Indonesia has overwhelmingly favoured expansion. Using the framework of the Jevons paradox, this paper contributes to the existing literature by arguing how and why political and social factors, rather than technology and market incentives, can better account for the differences between yield and land use efficiency in Indonesia and Malaysia today. The paper argues that expansion in Malaysia has been curtailed by the Malaysian government's pledge to maintain at least 50% forest cover in the late 1990s, coupled with a government supported corporate strategy of establishing plantations in Indonesia. Indonesia has made no such pledge, leading to expansionist policies focused on market creation and production goals with limited incentives for technology-driven intensification. It also notes however that in recent years, new socio-political developments in both countries may yet change this clear dichotomy of opposing land use strategies between these two countries, namely Sarawak's recent autonomous tendencies over land use and Indonesia's new leadership and international No Deforestation Peat and Exploitation (NDPE) commitments.

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.

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.

Louise S.L. Teh · Lydia C.L.Teh · Gavin Jolis ·Marine Policy ·2018

This study quantifies the Total Economic Value (TEV) marine turtles contribute to the Semporna Priority Conservation Area in Sabah, Malaysia, based on field surveys conducted in May 2014 with marine stakeholders, including 60 fishing households, 9 resorts, and 7 government and academic institutions. The estimated TEV of marine turtles was USD 23 million per year, ranging from USD 21–25 million. The estimated non-consumptive value of marine turtles far exceeded the consumptive use value. Moreover, the protection of marine turtles could potentially generate 1146 tourism jobs, equivalent to USD 469,000 in employment income per year. Conservation could be partially funded from tourism, as tourists were willing to contribute USD 1.5 million for marine turtle protection and conservation annually. Scenario analysis showed that the discounted TEV of marine turtles could reach up to USD 716 million over 30 years if full protection of turtles was implemented now. This is more than double the discounted TEV of marine turtles under status quo conditions (USD 262 million). By showing the substantial economic value derived from marine turtles, this study not only provides an important incentive for protecting marine turtles in Semporna, but also for investing in conserving marine resources in the wider Coral Triangle and Asia Pacific region.

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.

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.