The Effect Of Economic Conditions On Electricity Consumption In Malaysia

This study attempts to explore the effect of the economic conditions, including population growth rate, inflation rate and unemployment rate, on the electricity consumption in Malaysia over the period from 1982 to 2018. Multiple Linear Regression is used to examine the significant determinants of electricity consumption. In addition, Pearson's correlation and autocorrelation function are used to investigate the correlation between all the variables and to identify the presence of random processes in the series, respectively. The result of the multiple regression model validates the significance of the variables population, inflation, and unemployment. It shows that all the variables have a significant negative relationship with electricity consumption. Whereas the Pearson correlation confirms that there is a correlation between variables population and unemployment with electricity consumption. In contrast, the result of autocorrelation function indicates the existence of random process in this study.
Keywords: Electricity Consumption, Economic Condition, Correlation, Population, Malaysia