Abstract—The electricity sector plays a crucial role in
Malaysia's economic development, while also serving as a major
contributor to national carbon emissions. Using the Logarithmic
Mean Divisia Index (LMDI), we analyze the factors influencing
carbon emissions changes within Malaysia's electricity sector
from 2001 to 2019. Our analysis reveals that the fuel structure
effect emerged as the primary driver of emission increases,
accounting for 30.5%, whereas improvements in coal
consumption efficiency and generation structure contributed
only 3.5% and 7.8% to emissions, respectively. Transmission
and distribution losses, combined with socioeconomic factors
such as Gross Domestic Product (GDP) per capita and
population growth, further contributed to increases in emissions.
Despite advancements in energy efficiency and the deployment
of renewable energy, these measures have not sufficiently offset
the sector’s dependence on carbon-intensive energy sources.
These findings highlight the urgent need for targeted policy
interventions, including the accelerated integration of
renewable energy, modernization of power grid infrastructure,
and the promotion of innovation in low-carbon technologies.
Such actions are imperative to align Malaysia’s transition
toward a low-carbon economy with the dual imperatives of
economic growth and environmental sustainability.
Keywords—driving factors, carbon emission, electricity sector,
LMDI
Cite: Chen Chen, Mohammad Nizamuddin Inamdar, and Aiman Al-Odaini, " Identifying the Driving Factors of Carbon Emission Changes in Malaysia's Electricity Sector," International Journal of Environmental Science and Development vol. 16, no. 6, pp. 477-484, 2025.
Copyright © 2025 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).