Investigating possibility of achieving sustainable development goals through renewable energy, technological innovation, and entrepreneur: a study of global best practice policies

Abstract

This study is anchored on the global best practice policies for achieving sustainable goals for Malaysia. Malaysia is among the countries that made commitment at 2015 United Nations Climate Change Conference to reduce its carbon emissions by 2030. This is expected to contribute to the country’s sustainable development. Malaysian quarterly data of 1992Q1–2019Q4 with relevant policy-based instruments (renewable energy policy, technological innovations, fnancial development, and entrepreneur activities) are adopted in our study for explicit and clear insight on the subject. Diferent scientifc and analytical methods are equally applied in this study, but the focus and emphasis are laid on the fndings from linear (dynamic ordinary least square, DOLS) and non-linear autoregressive distributed lag (NARDL) and Granger causality. Findings from both NARDL and DOLS confrmed the positive shocks of renewable energy policy, technological innovations, fnancial development, and entrepreneur activities are mitigating carbon emissions. Also, inverted U shape of EKC hypothesis is found for Malaysia. Findings from Granger causality support the fndings from both estimates by establishing both feedback and unidirectional causal nexus among the instruments. From the fnding myms, policy-based instruments are mitigating carbon emissions in Malaysia; thus, it will be a very good idea to frame policies around these instruments.