Agricultural and Natural Resource Economics

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.

Chan Fatt Cheah · Abdul Samad Abdul-Rahim · Mohd Yusof Saari · Niaz Ahmad Mohd Naseem ·Journal of the Knowledge Economy ·2022

This paper aims to investigate the impact of the economic openness and institutional quality in explaining the environmental degradation in Malaysia that covers from 1980 to 2019. By using an innovative autoregressive distributed lag (ARDL) technique, the result indicates that economic openness that is measured through the trade and FDI are unequivocally environmental improving. Meanwhile, the institutional reforms also appeared to actualize the beneficial effect of environmental emission. The findings show that economic openness and institutional quality act as a key driving force to further curb the CO2 emission and in turn to reduce the environmental pollution. This suggests that countries with adequate trade, FDI, and institutional settings like Malaysia are on the right track to reinforce all efforts in bringing down pollution. Therefore, environmental quality can be improved through the greater ability and willingness to enforce environmental regulations and higher trade liberalization process, which is usually associated with higher income, more economic development, and better environment.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Gabriel M.S.Vianna · Mark G.Meekan · Abbie A.Rogers (The University of Western Australia · Marit E.Kragt · James M.Alin · Johanna S.Zimmerhackel ·Marine Policy ·2018

This study estimated the economic value of the shark-diving industry in Semporna, the most popular diving destination of Malaysia, by surveying the expenditures of diving tourists and dive operators through the region. A willingness-to-pay survey was also used to estimate the potential of the industry as a financing mechanism for enforcement and management of a hypothetical Marine Protected Area (MPA) to conserve shark populations. The study showed that in 2012, shark-diving tourism provided direct revenues in excess of USD 9.8 million to the Semporna region. These economic benefits had a flow-on effect, generating more than USD 2 million in direct taxes to the government and USD 1.4 million in salaries to the community. A contingent valuation analysis indicated that implementation of a fee paid by divers could generate over USD 2 million for management and enforcement of the MPA each year. These findings suggest that shark diving is an important contributor to the economy of the Semporna region that could be used as a mechanism to assist financial resourcing for management and conservation strategies.