Nexus of Innovation, Economic Growth, Environmental Pollution, and Renewable Energy in Industrial Revolution 5.0: The Case of Malaysia

Nexus of Innovation, Economic Growth, Environmental Pollution, and Renewable Energy in Industrial Revolution 5.0: The Case of Malaysia | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Nexus of Innovation, Economic Growth, Environmental Pollution, and Renewable Energy in Industrial Revolution 5.0: The Case of Malaysia Vu Ngoc Xuan, Thi Lan Anh Nguyen, Huong Giang Luong, Pham Xuan Hoa This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8322051/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The paper examines the dynamic relationship between innovation (INN), economic growth (EG), environmental pollution (EP), and renewable energy (RE) within Malaysia's transition to Industrial Revolution 5.0. By examining the nuanced interactions between technological advancements, GDP growth, and ecological impacts, the study aims to shed light on how Malaysia can pursue sustainable development. This paper uses econometric models and data from Malaysian industries. The paper offers insights into how INN can be leveraged to drive EG while mitigating environmental degradation, thereby contributing to the global discourse on sustainable industrialization. The Industrial Revolution 5.0 ushers in an era of unprecedented technological advancement and EG, yet it poses significant environmental challenges. This paper also examines the interconnection of INN, EG, EP, and RE within Malaysia, a country that has undergone a remarkable industrial transformation. Drawing on a comprehensive literature review, data analysis, and a case study of Malaysia, this research reveals the intricate interplay between INN, economic development, environmental degradation, and the shift towards RE sources. Findings highlight both the opportunities and challenges faced by Malaysia as it seeks to balance economic prosperity with environmental sustainability in the age of Industrial Revolution 5.0. Earth and environmental sciences/Environmental sciences Earth and environmental sciences/Environmental social sciences Social science/Environmental studies industrial revolution 5.0 (IR 5.0) economic growth (EG) carbon dioxide emissions (CO2) innovation (INN) renewable energy (RE) Figures Figure 1 Figure 2 Figure 3 Figure 4 1. Introduction The fifth Industrial Revolution (IR 5.0) is characterized by the fusion of digital, biological, and physical worlds powered by cyber-physical systems. Malaysia, as an emerging economy, stands at the cusp of this revolution, seeking to leverage INN for economic prosperity. The interplay of these advancements with environmental considerations presents a complex scenario that Malaysia must navigate to realize sustainable development (Balsalobre-Lorente, Contente dos Santos Parente, Leitão, & Cantos-Cantos, 2023 ). The advent of IR 5.0 has ushered in a paradigm shift in the global industrial landscape. Characterized by the convergence of digital technologies, artificial intelligence, and the Internet of Things, this new era promises remarkable EG and transformative INNs. However, with these advancements come pressing environmental concerns, notably pollution and resource depletion. This paper aims to dissect the intricate relationship between INN, EG, EP, and the adoption of RE in the specific context of Malaysia (Al Afif, Ayed, & Maaitah, 2023 ; An et al., 2023 ; Andersen et al., 2010 ; Balsalobre-Lorente, Contente dos Santos Parente, et al., 2023 ; Balsalobre-Lorente, Nur, Topaloglu, & Evcimen, 2023 ; Balsalobre-Lorente, Shahbaz, Murshed, & Nuta, 2023 ; Banerjee, 2022 ). This paper examines the intricate interconnections between INN, EG, and EP in the milieu of Malaysia's adoption of IR 5.0 technologies and practices. Leveraging econometric models, notably the Vector Error Correction Model (VECM) and Granger causality tests, the study analyzes the short-term and long-term relationships between the variables based on data sourced from Malaysian industries (Chen, Pinar, & Stengos, 2022 ). The analysis seeks to verify the applicability of the Schumpeterian Growth Theory and the Environmental Kuznets Curve (EKC) in the Malaysian economic structure, particularly how INN impacts economic output and environmental quality. The results indicate that INN plays a dual role, contributing to economic efficiency and providing solutions to environmental challenges, thereby offering a strategic path toward sustainable development. The paper contributes to the discourse on how emerging economies like Malaysia can navigate the complexities of sustainable industrialization, balancing EG with ecological conservation in the era of IR 5.0 (Borg, Kits, Junttila, & Uddin, 2022 ; Bui Minh & Bui Van, 2023 ; Can, Balsalobre-Lorente, Adedoyin, & Mercan, 2023 ; Chen et al., 2022 ). Malaysia is a compelling case study due to its significant economic development, rapid industrialization, and governmental efforts to promote sustainable practices. The objectives of this study are to explore the role of INN in driving EG, evaluate the environmental challenges posed by this growth, and scrutinize the measures taken to transition towards RE sources. By delving into these dimensions, we seek to provide insights not only into Malaysia's unique trajectory but also to draw lessons applicable to other nations experiencing similar transitions (Borg et al., 2022 ). This paper contains 05 sections as follows: Section 1- Introduction; Section 2 - Literature Review; Section 3 - Methodology; Section 4 - Results and Discussions; Section 5 - Conclusion and Policy Implications. 2. Literature Review Malaysia, an economy in transition, stands at a critical juncture characterized by a potential paradigm shift towards IR 5.0. This revolution is characterized by the integration of advanced technologies and innovative processes in the industrial sector, enhancing productivity and promoting sustainable growth. This paper aims to examine the relationships between INN-driven EG and environmental outcomes in Malaysia's industrial sector, offering insights into the potential and pitfalls of IR 5.0 within an emerging economy (Doğan, Chu, Ghosh, Diep Truong, & Balsalobre-Lorente, 2022). The historical backdrop of industrial revolutions has consistently illustrated the transformative power of technological INNs on economies. The mechanization of the First Industrial Revolution, mass production of the Second, and automation in the Third have all significantly contributed to EG. However, these advances have come at the cost of environmental degradation, as witnessed through pollution, deforestation, and carbon emissions (Dai et al., 2023 ; Doğan et al., 2022 ; Fadly, 2020 ; Feng, Xiao, Zhou, & Ni, 2023 ; Giang, Trung, Yoshida, Xuan, & Que, 2019 ; P. X. Hoa, Xuan, & Phuong Thu, 2023 ; Nguyen, 2022 ; Nguyen Thi Ngoc, 2016). With the advent of the IR 5.0, a new chapter unfolds. INNs in artificial intelligence, nanotechnology, and RE offer the potential for environmentally sustainable growth. Nevertheless, there is a critical need to strike a balance between fostering INN-driven EG and mitigating environmental damage (Fiori & Foroni, 2019 ; Huang, Kuldasheva, & Salahodjaev, 2021 ; Johnathon, Agalgaonkar, Planiden, & Kennedy, 2023 ; Joo, Shawl, & Makina, 2022 ; Thu, Huong, & Xuan, 2022 ; Thu, Xuan, & Huong, 2022 ; Wei, Liu, Ye, Chen, & Weng, 2023 ). Malaysia, an emerging economy in Southeast Asia, has experienced rapid industrialization over the past few decades. This transformation, driven by technological advancements, has yielded notable EG and raised environmental concerns, including air and water pollution, deforestation, and habitat destruction. In response, the Malaysian government has adopted policies to promote RE and reduce pollution levels (P. X. Hoa et al., 2023 ). The Schumpeterian Growth Theory posits that economic development is driven by innovative activities that result in creative destruction, leading to the emergence of new industries and economic structures. In Malaysia, the nexus between INN and EG is evident in the rapid expansion of the high-tech industry and the digital economy. However, the EKC hypothesis, which suggests that pollution rises with income to a certain point before declining, presents an oversimplified view when applied to Malaysia's multifaceted economic landscape (Huang et al., 2021 ; Tsai et al., 2021 ; Usman, Alola, & Akadiri, 2022 ). 2.1. INN and EG Schumpeterian Growth Theory and its relevance to IR 5.0. Empirical evidence from the Malaysian manufacturing sector and service industry. Schumpeterian Growth Theory emphasizes the disruptive role of INN in economic development. In Malaysia, this is evident in the government's push towards a knowledge-based economy, with significant investments in high-tech industries. Previous studies have highlighted how technology-intensive sectors in Malaysia have outpaced traditional industries in growth and productivity, which supports Schumpeter's thesis. The Malaysian Digital Economy Corporation (MDEC) initiatives testify to this transformation (P. X. Hoa, Xuan V.N., Thu N.T.P.; Johnathon et al., 2023 ; Xuan, 2025 ). 2.2. EG and EP The Environmental Kuznets Curve (EKC) hypothesis in the Malaysian context. Historical trends of EG and environmental degradation in Malaysia. The EKC- Environmental Kuznets Curve hypothesis posits an inverted-U nexus of environmental degradation and EG. In Malaysia, rapid industrialization has been accompanied by increased pollution and resource depletion, aligning with the initial upward slope of the EKC. However, Malaysia's commitment to the United Nations Sustainable Development Goals (SDGs) indicates a potential shift towards the downward slope, where EG could coexist with environmental restoration (Joo et al., 2022 ; Khan, Khan, & Rehan, 2020 ; Xuan, 2025 , 2026 ). 2.3. INN and EP The paper identifies the role of green technologies and sustainable practices in IR 5.0. INN in Malaysia has begun to reflect a dual character by promoting economic competitiveness while prioritizing environmental sustainability. The adoption of green technology in energy and waste management is a testament to this trend. The Malaysian Green Technology Corporation (GreenTech Malaysia) is instrumental in promoting these initiatives, aligning with global trends towards sustainability (Khan, Teng, & Khan, 2019 ; Khan, Teng, Khan, & Khan, 2019 ; Kocoglu, Jahanger, Awan, Barak, & Balsalobre-Lorente, 2023 ; Le, Nguyen, & Phan, 2022 ). 3. Methodology 3.1. Data Collection GDP growth rates, INN indices, and pollution data from Malaysian governmental and international databases. The study utilizes annual data from 2000 to 2022 from the Department of Statistics Malaysia, the World Bank, and other relevant sources. Key variables include the GDP growth rate, R&D expenditure, patent applications as a proxy for innovation, and environmental indicators such as CO2 emissions and pollution index scores. This study examines the interconnection between INN, EG, EP, and RE in Malaysia. A mixed-methods approach was employed. The study draws on a range of quantitative and qualitative data sources, including government reports, academic studies, and expert interviews. Quantitative data encompass economic indicators such as GDP growth, INN indices, and pollution levels over the past two decades. Qualitative data, including expert insights and case studies, provide a nuanced understanding of the dynamics at play. The research also includes a comprehensive review of government policies and initiatives on RE adoption and environmental protection. These policies are evaluated for their impact on the nexus of INN, EG, and environmental sustainability. The manuscript uses time-series data from Malaysian industries over the past two decades. This paper employs VECM to capture the dynamic interplay between INN, EG, and EP. The causality tests will identify the direction of the relationship, providing evidence of whether INN and EG precede changes in EP or vice versa. Figure 1 . Nexus of INN, EG, and CO2 regarding RE consumption 3.2. Econometric Models Table 1 presents the independent variables and dependent variables in the model. Table 1 The variables related to the dependent variables of the regression model Variables Observation Mean Standard Deviation Minimum Maximum Year 23 2011 6.7 2000 2022 RE (%) 23 5.030742 5.087842 2.13846 23.16317 INN (GII rank) 23 29.91304 8.139120 37 25 Gross Domestic Product (billions USD) 23 250 103 92.8 406 CO2 million tons 23 212.3769 47.53163 126.203 278.659 Twenty-three observations were compiled as data collected in Malaysia between 2000 and 2022. The graph of RE consumption (%) in Malaysia is presented in Fig. 2 . The chart indicates that RE consumption in this country has increased over time, with a particularly notable rate of increase in recent years. The graph of gross domestic product (billion US dollars) in Malaysia is presented in Fig. 3 . The chart indicates that the country's gross domestic product (GDP) has increased over time, albeit at a slower rate in recent years. The graph of CO 2 emissions (million tons) in Malaysia is presented in Fig. 4 . The chart indicates that CO 2 emissions in this country have fluctuated over time, but have increased at a slower rate in recent years. This paper used the function of Eq. (1) as follows: LnY = Bo + B1LnX1 + B2LnX2 + B3LnX3 + ε i,t (1) The study model used is detailed in the following section. The function Y = function (X1, X2, X3…) was used, in which the dependent and independent variables were the following: Y: the dependent variable of RE consumption, which percentages measure; X1: the independent variable of the global INN index, measured by rankings. X2: the independent variable of gross domestic product or EG, which is measured in billions of US dollars; X3: The CO2 emissions measured by the million tons present EP; The manuscript has the hypothesis in the research as follows: H 1 : INN positively affects RE consumption. H 2 : Gross domestic product positively affects RE consumption. H 3 : CO2 hurts RE consumption. The independent variable is presented in Table 2 as follows: Table 2 The independent and dependent variables used in the paper Variable Concept Relationship X1 INN + X2 Gross domestic product + X3 CO2 - The definitions and symbols in Table 2 indicate that INN has a positive effect on RE consumption. In contrast, gross domestic product has a positive effect on RE consumption, while CO2 emissions harm RE consumption. 4. Results Table 3 presents the regression analysis results for INN (X1), gross domestic product (X2), CO2 (X3), and RE consumption (Y) in Malaysia, spanning the period from 2000 to 2022. According to the adjusted R-squared value of 0.9061, the RE consumption can be explained by 90.61% of the variation in the independent variable. Table 3 Regression analysis model of INN (X 1 ), gross domestic product (X 2 ), CO2 (X 3 ), and RE consumption (Y) for the period from 2000 to 2022 in Malaysia. Source SS Df MS Number of obs = 23 Model 4.62883166 3 1.54294389 Prob > F = 0.0000 Residual 4.30746984 19 0.226708939 R-squared = 0.9180 Adj R-squared = 0.9061 Total 8.9363015 22 0.406195523 Root MSE = 0.47614 Ln RE Coef. Std. Err. T P>|t| [95% Conf. Interval] Ln INN 0.984908 ** 0.4019382 2.45 0.024 0.1436426 1.826175 Ln GDP Current US 1.911195*** 1.0852150 7.76 0.000 0.3601868 4.182577 Ln CO2 emissions -0.627827*** 1.8766350 -8.59 0.000 -4.555669 -3.300015 _Cons -48.97611*** 1.5374400 -9.40 0.000 -18.05895 -11.62315 *** represents 1% significance, respectively Based on the regression above, the articles have the function in Eq. (2) as follows: LnY = -48.97 + 0.9849LnX1 + 1.91LnX2–0.6278LnX3 (2) Table 4 illustrates the correlation coefficients for the independent variables within the model. Table 4 The correlation of the independent variables in the model INN Gross domestic product CO2 INN 1 Gross Domestic Product 0.22 1 CO2 -0.19 0.21 1 Analysis of INN's Impact on EG- The results of this study illuminate the intricate web of factors at play within the nexus of INN, EG, EP, and RE in Malaysia. Key findings include: INN-Driven EG- Malaysia's EG during IR 5.0 is significantly influenced by technological INNs, particularly in electronics, manufacturing, and digital services. These INNs have contributed to rising GDP figures and increased foreign investment. EP- The rapid industrialization and urbanization have brought about a surge in EP. Air pollution, in particular, has become a significant concern, with increasing levels of greenhouse gas emissions that contribute to global climate change. Water pollution and deforestation are additional challenges that require attention. RE Transition- The government of Malaysia has recognized the need for a shift towards RE sources. Policies and incentives to develop RE, including solar and wind power, have been implemented. These measures aim to reduce the nation's dependence on fossil fuels and mitigate environmental harm. Challenges of Transition - Despite the initiatives, Malaysia faces several challenges in transitioning to RE. These include the need for infrastructure development, technology adaptation, and financing for clean energy projects. Additionally, there is a need for regulatory frameworks to facilitate the international integration of RE into the national grid. Initial findings indicate a positive impact of INN on EG across various sectors, with particularly significant effects in the manufacturing and digital services sectors. However, the nexus between EG and EP is more complex, with evidence supporting and refuting the EKC hypothesis in different contexts within Malaysia. The study improves quantitative evidence of the INN-output relationship in Malaysia. The econometric analysis suggests a robust positive correlation between INN (as measured by R&D expenditure and patent applications) and EG. Sub-sector analysis indicates that industries such as electronics, biotechnology, and digital services show the highest sensitivity to INN inputs. The paper presents sector-specific analysis and policy implications as follows. Environmental Implications of Economic Expansion - The manuscript enhances the assessment of pollution levels in relation to economic milestones. The issue is the applicability of the EKC in the Malaysian economic structure. Pollution metrics initially increased with EG, supporting the EKC hypothesis. However, after implementing green policies and INN, the trend shows signs of plateauing or even decreasing pollution levels, suggesting a move towards the downward slope of the EKC. The Dual Role of INN: Evidence of INN contributes to both economic efficiency and pollution control, as illustrated by the paper's success stories and challenges within the Malaysian context. INN has contributed to improved energy efficiency and the introduction of cleaner production processes, reflecting its role in addressing environmental issues. The results indicate that investments in green technologies have begun to pay dividends in reducing the environmental impact of economic activities. 5. Discussions The results of this study provoke essential discussions on the future of industrialized nations in the age of IR 5.0. Malaysia's experience provides valuable lessons and insights for other countries undergoing similar transformations. One notable discussion point is the inherent tension between EG and environmental sustainability. While INN drives economic prosperity, it simultaneously poses challenges in terms of environmental degradation. The Malaysian case underscores the need for a balanced approach that leverages INN for growth while ensuring the effective mitigation of pollution and the adoption of RE sources. Another crucial discussion pertains to the role of government policies and incentives. Proactive policies have facilitated Malaysia's shift towards RE, yet the challenges in infrastructure development and technology adoption persist. This issue underscores the importance of comprehensive planning and financial support to ensure a seamless transition. The paper proposes a balanced approach to policy-making that fosters INN and economic expansion while prioritizing environmental sustainability. It highlights the role of green technologies and sustainable practices in reconciling these objectives and suggests that Malaysia's path to sustainable industrialization could serve as a model for similar economies. The findings suggest that Malaysia's policy framework, which increasingly integrates INN and environmental considerations, can lead to a sustainable economic model. However, challenges remain, including the need for more robust enforcement of environmental regulations, more significant incentives for clean technology, and promotion of sustainable practices at the corporate and consumer levels. The interplay between INN, EG, and environmental protection is a cornerstone for the sustainable development of any nation. Malaysia's focus on IR 5.0 presents challenges and opportunities in this regard. 6. Conclusion The study provides empirical evidence on how Malaysia can navigate the nexus of INN, EG, and EP as part of IR 5.0. It underscores the importance of a cohesive strategy that aligns technological advancements with sustainable development goals, offering a roadmap for Malaysia to emerge as a leader in sustainable industrialization. The case of Malaysia offers valuable insights into the complex interrelationship between INN, EG, EP, and RE. As the nation navigates the challenges of IR 5.0, it exemplifies the promises and perils of technological advancement. INN has been a driving force behind Malaysia's EG, but this growth has come at the cost of environmental degradation. Pollution levels have surged, affecting air and water quality, ecosystems, and human health. Nevertheless, the government's efforts to promote RE sources and sustainable practices signify a commitment to balancing economic prosperity with environmental stewardship. As Malaysia seeks to harness the benefits of IR 5.0 while mitigating its environmental impact, the lessons learned from this case study can guide policymakers and industries worldwide in their efforts to achieve the same goals. The need for coordinated action, technological INN, and sustainability practices becomes increasingly evident in this age of rapid industrial transformation. Balancing EG and environmental sustainability is an ongoing challenge, and Malaysia's experiences provide a valuable roadmap for navigating this critical nexus. The case of Malaysia serves as a poignant example of the nexus of INN, EG, EP, and RE in the context of IR 5.0. It reveals the dynamic and intricate relationship between these elements, providing valuable insights for policymakers and industrial leaders worldwide. As Malaysia continues its journey toward sustainable development, the study emphasizes the importance of integrating innovative technologies and RE solutions into economic strategies. It underscores that the pursuit of EG should be coupled with a commitment to environmental stewardship for long-term prosperity and the well-being of its citizens. In conclusion, this research reaffirms the necessity for proactive government policies, infrastructure development, and technology adaptation to facilitate a transition to RE sources. Malaysia's story is a testament to the challenges and opportunities presented by IR 5.0, and it highlights the path forward for nations seeking to strike a harmonious balance between growth, environmental protection, and sustainable energy practices. The nexus of INN, EG, EP, and RE is a critical concern in the age of IR 5.0. Malaysia's case highlights both the opportunities and challenges associated with this transformative era. The country's commitment to INN-driven growth, coupled with a recognition of environmental concerns, exemplifies the balancing act required to navigate this nexus successfully. As nations worldwide grapple with the imperatives of economic development and environmental sustainability, the lessons from Malaysia's journey are invaluable. The imperative is to embrace INN while actively addressing the environmental challenges that accompany it. The case of Malaysia serves as a compelling reminder that the pursuit of EG can and should be aligned with environmental protection and RE practices. This research highlights the importance of coordinated efforts and proactive policies, as well as a steadfast commitment to striking a balance between economic growth and environmental sustainability. In the millen of IR 5.0, such equilibrium will be crucial not only for the prosperity of nations but also for the future of our planet. Building upon the insights gained from the case of Malaysia, several key recommendations can be made for countries and regions experiencing the effects of IR 5.0: Sustainable INN- encourage INN that aligns with sustainable development goals. Invest in research and development in renewable technologies, energy-efficient practices, and environmentally friendly industrial processes. Environmental Regulation - Implement and strengthen environmental regulations to monitor and control pollution. Set clear emissions targets and enforce penalties for non-compliance to reduce the environmental impact of EG. Promotion of RE- develop comprehensive strategies for transitioning to RE sources. Provide incentives for the adoption of solar, wind, and other clean energy technologies while also investing in energy storage and grid infrastructure. Public Awareness and Education- promote public awareness of the necessity of environmental protection and RE. Engage the public in sustainable practices and encourage behavioral changes. Collaborative Initiatives- collaborate with international organizations, governments, and industries to share best practices and technologies for addressing environmental challenges while fostering INN and EG. In conclusion, Malaysia's experience underscores the significance of INN as a catalyst for economic transformation and environmental stewardship in the era of Industry 5.0. This paper calls for strategically integrating innovative practices into national policy frameworks to facilitate a sustainable economic trajectory. This paper highlights the potential for Malaysia to forge a new path in the era of IR 5.0, one that leverages INN for EG while ensuring environmental sustainability. The findings suggest that, with a continued commitment to research, development, and green policies, Malaysia can become a model for sustainable development in the region. The evidence presented in this paper indicates that Malaysia is on a path that could reconcile economic expansion with environmental sustainability. Integrating INN into this pathway is critical, as is the role of comprehensive policies that support sustainable practices. The vision for Malaysia to serve as a benchmark for sustainable growth in the context of IR 5.0 is attainable, provided there is a continued commitment to INN, environmental protection, and the development of human capital. The paper concludes by underscoring the potential for Malaysia to not only benefit from IR 5.0 but also to contribute to the global understanding of sustainable industrialization. 7. Policy Implications Malaysia's existing policies on INN and green technologies suggest an awareness of the importance of sustainable growth. Initiatives such as the Eleventh Malaysia Plan and the National Green Technology Policy reflect this strategic focus. However, these policies must be implemented consistently and effectively across various levels of government and industry to be truly effective. Corporate Responsibility - Malaysian corporations are beginning to recognize their role in this transition. The ad of Corporate Social Responsibility- CSR practices encompassing sustainability goals is increasing. Nevertheless, a gap exists that needs to be bridged between CSR activities and core business functions responsible for environmental impact. Public Awareness and Education - Public awareness is critical in driving demand for sustainable products and practices. Educational programs can play a pivotal role in shaping public perception and consumer behavior. The paper emphasizes the need for educational reforms that integrate environmental awareness from an early age. Research and Development (R&D) - continued investment in R&D is essential for sustaining Innovation-Led growth. Malaysia's investment in R&D, as a percentage of GDP, is compared with that of other Southeast Asian nations, highlighting the need for increased investment to maintain a competitive advantage. Balancing Economic and Environmental Goals: Strategies for Malaysia to Reconcile Economic Imperatives with Environmental Sustainability. The role of government policies, corporate responsibility, and public awareness. INN as a Tool for Sustainable Growth- insights into how Malaysia can integrate innovative practices to foster eco-friendly growth. Recommendations for scaling up successful models within different sectors. Limitations of the Study - This research has several limitations. One area for improvement is the focus on the case of Malaysia, which, while offering valuable insights, may only be partially generalizable to some countries. Each nation's unique economic, political, and environmental context plays a role in shaping the observed dynamics. Additionally, the data used in this study are subject to potential inaccuracies and biases. For further research, it is essential to conduct comprehensive data collection and analysis to strengthen the robustness of the findings. The study acknowledges the limitations inherent in the available data and the scope of econometric models. Further research is suggested to incorporate qualitative data and to explore the role of factors such as foreign direct investment (FDI) and international trade in shaping the INN-EG-environment nexus. Future Research Directions - The complex nature of the interplay between INN, EG, EP, and RE warrants further investigation. Future research could explore: Future studies can conduct a comparative analysis of different countries' experiences with IR 5.0 to identify commonalities and differences. The other research can have the long-term environmental and economic impacts of the transition to RE sources. Another study can be the role of innovative technologies in mitigating EP and resource depletion. The future paper can also discuss the effectiveness of international agreements and collaborations in addressing global environmental challenges. The nexus of INN, EG, and EP is not unique to Malaysia, yet the country's response to these interconnected challenges can offer valuable lessons for other emerging economies. As nations worldwide grapple with the demands of sustainable development, the Malaysian case provides insights into the potential for policy, corporate action, and civic engagement to shape outcomes. The paper suggests several avenues for future research. One such direction is the exploration of the impact of digitalization on labor markets and income distribution within the context of IR 5.0. Another is examining the role of international collaborations in technology transfer and capacity building for environmental management. Additionally, longitudinal studies tracking the impact of specific policy interventions on INN rates and environmental outcomes could yield granular insights into the efficacy of Malaysia's approach. Comparative studies with nations at similar developmental stages could contextualize Malaysia's experience within a broader spectrum of industrial strategies. Contributions to the Field - This study contributes to the emerging body of literature on IR 5.0 by providing a comprehensive analysis of the multifaceted effects of INN on both economic and environmental spheres in the context of an emerging economy. It also extends the discourse on the EKC hypothesis by incorporating the latest phase of industrial development. It presents evidence that challenges traditional assumptions about the inevitability of environmental degradation in the wake of EG. Furthermore, by integrating econometric analysis with policy review, the study bridges the gap between quantitative research and the practical considerations of policy implementation. It, therefore, offers a model for interdisciplinary research that combines economic theory, environmental science, and policy analysis. Final Remarks - In summary, this paper asserts that Malaysia's strategic approach to harnessing the potential of IR 5.0 has set the stage for a sustainable economic trajectory that does not compromise environmental integrity. As nations around the world continue to advance technologically, the findings herein underscore the importance of foresight in policy design and the benefits of embracing INN in support of both economic and environmental objectives. Declarations Competing Interests: The authors declare that they have no competing interests. Institutional Review Board Statement: Not applicable. ETHICAL APPROVAL: This article does not contain any studies with human participants performed by any of the authors INFORMED CONSENT: This article does not contain any studies with human participants performed by any of the authors Author Contribution Author ContributionsConceptualization, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Data duration, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Formal analysis, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Funding acquisition, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Investigation, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Methodology, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Project administration, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Resources, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Supervision, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Validation, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Visualization, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Writing—original draft, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Writing—review and editing, V.N.X; T.L.A.N.; H.G.L.; P.X.H. All authors have read and agreed to the published version of the manuscript. Data Availability The datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request. References Al Afif, R., Ayed, Y., & Maaitah, O. N. (2023). Feasibility and optimal sizing analysis of hybrid renewable energy systems: A case study of Al-Karak, Jordan. Renewable Energy, 204 , 229-249. doi:10.1016/j.renene.2022.12.109 An, Y.-S., Kim, J., Joo, H.-J., Han, G.-w., Kim, H., Lee, W., & Kim, M.-H. (2023). Retrofit of renewable energy systems in existing community for positive energy community. Energy Reports, 9 , 3733-3744. doi:10.1016/j.egyr.2023.02.055 Andersen, O., Gössling, S., Simonsen, M., Walnum, H. J., Peeters, P., & Neiberger, C. (2010). CO2 emissions from the transport of China's exported goods. Energy Policy, 38 (10), 5790-5798. doi:10.1016/j.enpol.2010.05.030 Balsalobre-Lorente, D., Contente dos Santos Parente, C., Leitão, N. 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Renewable Energy and CO2 Emissions: Empirical Evidence from Major Energy-Consuming Countries. Energies, 14 (22). doi:10.3390/en14227504 Johnathon, C., Agalgaonkar, A. P., Planiden, C., & Kennedy, J. (2023). A proposed hedge-based energy market model to manage renewable intermittency. Renewable Energy, 207 , 376-384. doi:10.1016/j.renene.2023.03.017 Joo, B. A., Shawl, S., & Makina, D. (2022). The interaction between FDI, host country characteristics and economic growth? A new panel evidence from BRICS. Journal of Economics and Development, 24 (3), 247-261. doi:10.1108/jed-03-2021-0035 Khan, M. K., Khan, M. I., & Rehan, M. (2020). The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan. Financial Innovation, 6 (1), 1. doi:10.1186/s40854-019-0162-0 Khan, M. K., Teng, J.-Z., & Khan, M. I. (2019). Effect of energy consumption and economic growth on carbon dioxide emissions in Pakistan with dynamic ARDL simulations approach. Environmental Science and Pollution Research, 26 (23), 23480-23490. doi:10.1007/s11356-019-05640-x Khan, M. K., Teng, J.-Z., Khan, M. I., & Khan, M. O. (2019). Impact of globalization, economic factors and energy consumption on CO2 emissions in Pakistan. Science of The Total Environment, 688 , 424-436. doi:https://doi.org/10.1016/j.scitotenv.2019.06.065 Kocoglu, M., Jahanger, A., Awan, A., Barak, D., & Balsalobre-Lorente, D. (2023). Examining the nonlinear impact of human capital on environmental degradation in N-11 countries: an application of the PSTR approach. Environmental Science and Pollution Research, 30 (29), 74265-74279. doi:10.1007/s11356-023-27426-y Le, T. T. H., Nguyen, V. C., & Phan, T. H. N. (2022). Foreign Direct Investment, Environmental Pollution and Economic Growth—An Insight from Non-Linear ARDL Co-Integration Approach. Sustainability, 14 (13). doi:10.3390/su14138146 Nguyen, P. T. (2022). Carbon emissions versus value-added in export-driven countries: case of Vietnam. J Econ Struct, 11 (1), 12. doi:10.1186/s40008-022-00272-w Nguyen Thi Ngoc, A. (2016). Regional Determinants of FDI Location in Vietnam. Journal of Economics and Development , 19-37. doi:10.33301/2016.18.01.02 Thu, N. T. P., Huong, L. M., & Xuan, V. N. (2022). Factors Affecting Environmental Pollution for Sustainable Development Goals—Evidence from Asian Countries. Sustainability, 14 (24). doi:10.3390/su142416775 Thu, N. T. P., Xuan, V. N., & Huong, L. M. (2022). Analysis of the Factors Affecting Environmental Pollution for Sustainable Development in the Future—The Case of Vietnam. Sustainability, 14 (23). doi:10.3390/su142315592 Tsai, J.-F., Nguyen, P.-H., Lin, M.-H., Nguyen, D.-V., Lin, H.-H., & Ngo, A.-T. (2021). Impacts of Environmental Certificate and Pollution Abatement Equipment on SMEs’ Performance: An Empirical Case in Vietnam. Sustainability, 13 (17). doi:10.3390/su13179705 Usman, O., Alola, A. A., & Akadiri, S. S. (2022). Effects of domestic material consumption, renewable energy, and financial development on environmental sustainability in the EU-28: Evidence from a GMM panel-VAR. Renewable Energy, 184 , 239-251. doi:10.1016/j.renene.2021.11.086 Wei, X., Liu, D., Ye, S., Chen, F., & Weng, J. (2023). Optimal sizing of energy storage in generation expansion planning of new power system with high penetration of renewable energies. Energy Reports, 9 , 1938-1947. doi:10.1016/j.egyr.2023.04.190 Xuan, V. N. (2025). Determinants of carbon dioxide emissions in technology revolution 5.0: New insights in Vietnam. Environmental and Sustainability Indicators, 26 , 100636. doi:https://doi.org/10.1016/j.indic.2025.100636 Xuan, V. N. (2026). Nexus of innovation, gross domestic product, CO2, and renewable energy in China. Green Technologies and Sustainability, 4 (1), 100261. doi:https://doi.org/10.1016/j.grets.2025.100261 Additional Declarations No competing interests reported. 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Introduction","content":"\u003cp\u003eThe fifth Industrial Revolution (IR 5.0) is characterized by the fusion of digital, biological, and physical worlds powered by cyber-physical systems. Malaysia, as an emerging economy, stands at the cusp of this revolution, seeking to leverage INN for economic prosperity. The interplay of these advancements with environmental considerations presents a complex scenario that Malaysia must navigate to realize sustainable development (Balsalobre-Lorente, Contente dos Santos Parente, Leit\u0026atilde;o, \u0026amp; Cantos-Cantos, \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eThe advent of IR 5.0 has ushered in a paradigm shift in the global industrial landscape. Characterized by the convergence of digital technologies, artificial intelligence, and the Internet of Things, this new era promises remarkable EG and transformative INNs. However, with these advancements come pressing environmental concerns, notably pollution and resource depletion. This paper aims to dissect the intricate relationship between INN, EG, EP, and the adoption of RE in the specific context of Malaysia (Al Afif, Ayed, \u0026amp; Maaitah, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; An et al., \u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Andersen et al., \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2010\u003c/span\u003e; Balsalobre-Lorente, Contente dos Santos Parente, et al., \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Balsalobre-Lorente, Nur, Topaloglu, \u0026amp; Evcimen, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Balsalobre-Lorente, Shahbaz, Murshed, \u0026amp; Nuta, \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Banerjee, \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eThis paper examines the intricate interconnections between INN, EG, and EP in the milieu of Malaysia's adoption of IR 5.0 technologies and practices. Leveraging econometric models, notably the Vector Error Correction Model (VECM) and Granger causality tests, the study analyzes the short-term and long-term relationships between the variables based on data sourced from Malaysian industries (Chen, Pinar, \u0026amp; Stengos, \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). The analysis seeks to verify the applicability of the Schumpeterian Growth Theory and the Environmental Kuznets Curve (EKC) in the Malaysian economic structure, particularly how INN impacts economic output and environmental quality. The results indicate that INN plays a dual role, contributing to economic efficiency and providing solutions to environmental challenges, thereby offering a strategic path toward sustainable development. The paper contributes to the discourse on how emerging economies like Malaysia can navigate the complexities of sustainable industrialization, balancing EG with ecological conservation in the era of IR 5.0 (Borg, Kits, Junttila, \u0026amp; Uddin, \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Bui Minh \u0026amp; Bui Van, \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Can, Balsalobre-Lorente, Adedoyin, \u0026amp; Mercan, \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Chen et al., \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eMalaysia is a compelling case study due to its significant economic development, rapid industrialization, and governmental efforts to promote sustainable practices. The objectives of this study are to explore the role of INN in driving EG, evaluate the environmental challenges posed by this growth, and scrutinize the measures taken to transition towards RE sources. By delving into these dimensions, we seek to provide insights not only into Malaysia's unique trajectory but also to draw lessons applicable to other nations experiencing similar transitions (Borg et al., \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). This paper contains 05 sections as follows: Section 1- Introduction; Section \u003cspan refid=\"Sec2\" class=\"InternalRef\"\u003e2\u003c/span\u003e- Literature Review; Section \u003cspan refid=\"Sec6\" class=\"InternalRef\"\u003e3\u003c/span\u003e- Methodology; Section \u003cspan refid=\"Sec9\" class=\"InternalRef\"\u003e4\u003c/span\u003e- Results and Discussions; Section \u003cspan refid=\"Sec10\" class=\"InternalRef\"\u003e5\u003c/span\u003e- Conclusion and Policy Implications.\u003c/p\u003e"},{"header":"2. Literature Review","content":"\u003cp\u003eMalaysia, an economy in transition, stands at a critical juncture characterized by a potential paradigm shift towards IR 5.0. This revolution is characterized by the integration of advanced technologies and innovative processes in the industrial sector, enhancing productivity and promoting sustainable growth. This paper aims to examine the relationships between INN-driven EG and environmental outcomes in Malaysia's industrial sector, offering insights into the potential and pitfalls of IR 5.0 within an emerging economy (Doğan, Chu, Ghosh, Diep Truong, \u0026amp; Balsalobre-Lorente, 2022).\u003c/p\u003e \u003cp\u003eThe historical backdrop of industrial revolutions has consistently illustrated the transformative power of technological INNs on economies. The mechanization of the First Industrial Revolution, mass production of the Second, and automation in the Third have all significantly contributed to EG. However, these advances have come at the cost of environmental degradation, as witnessed through pollution, deforestation, and carbon emissions (Dai et al., \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Doğan et al., \u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Fadly, \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Feng, Xiao, Zhou, \u0026amp; Ni, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Giang, Trung, Yoshida, Xuan, \u0026amp; Que, \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; P. X. Hoa, Xuan, \u0026amp; Phuong Thu, \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Nguyen, \u003cspan citationid=\"CR28\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Nguyen Thi Ngoc, 2016).\u003c/p\u003e \u003cp\u003eWith the advent of the IR 5.0, a new chapter unfolds. INNs in artificial intelligence, nanotechnology, and RE offer the potential for environmentally sustainable growth. Nevertheless, there is a critical need to strike a balance between fostering INN-driven EG and mitigating environmental damage (Fiori \u0026amp; Foroni, \u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Huang, Kuldasheva, \u0026amp; Salahodjaev, \u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Johnathon, Agalgaonkar, Planiden, \u0026amp; Kennedy, \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Joo, Shawl, \u0026amp; Makina, \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Thu, Huong, \u0026amp; Xuan, \u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Thu, Xuan, \u0026amp; Huong, \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Wei, Liu, Ye, Chen, \u0026amp; Weng, \u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eMalaysia, an emerging economy in Southeast Asia, has experienced rapid industrialization over the past few decades. This transformation, driven by technological advancements, has yielded notable EG and raised environmental concerns, including air and water pollution, deforestation, and habitat destruction. In response, the Malaysian government has adopted policies to promote RE and reduce pollution levels (P. X. Hoa et al., \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eThe Schumpeterian Growth Theory posits that economic development is driven by innovative activities that result in creative destruction, leading to the emergence of new industries and economic structures. In Malaysia, the nexus between INN and EG is evident in the rapid expansion of the high-tech industry and the digital economy. However, the EKC hypothesis, which suggests that pollution rises with income to a certain point before declining, presents an oversimplified view when applied to Malaysia's multifaceted economic landscape (Huang et al., \u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Tsai et al., \u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Usman, Alola, \u0026amp; Akadiri, \u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e \u003cdiv id=\"Sec3\" class=\"Section2\"\u003e \u003ch2\u003e2.1. INN and EG\u003c/h2\u003e \u003cp\u003eSchumpeterian Growth Theory and its relevance to IR 5.0. Empirical evidence from the Malaysian manufacturing sector and service industry. Schumpeterian Growth Theory emphasizes the disruptive role of INN in economic development. In Malaysia, this is evident in the government's push towards a knowledge-based economy, with significant investments in high-tech industries. Previous studies have highlighted how technology-intensive sectors in Malaysia have outpaced traditional industries in growth and productivity, which supports Schumpeter's thesis. The Malaysian Digital Economy Corporation (MDEC) initiatives testify to this transformation (P. X. Hoa, Xuan V.N., Thu N.T.P.; Johnathon et al., \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Xuan, \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2025\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec4\" class=\"Section2\"\u003e \u003ch2\u003e2.2. EG and EP\u003c/h2\u003e \u003cp\u003eThe Environmental Kuznets Curve (EKC) hypothesis in the Malaysian context. Historical trends of EG and environmental degradation in Malaysia. The EKC- Environmental Kuznets Curve hypothesis posits an inverted-U nexus of environmental degradation and EG. In Malaysia, rapid industrialization has been accompanied by increased pollution and resource depletion, aligning with the initial upward slope of the EKC. However, Malaysia's commitment to the United Nations Sustainable Development Goals (SDGs) indicates a potential shift towards the downward slope, where EG could coexist with environmental restoration (Joo et al., \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2022\u003c/span\u003e; Khan, Khan, \u0026amp; Rehan, \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Xuan, \u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2025\u003c/span\u003e, \u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2026\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec5\" class=\"Section2\"\u003e \u003ch2\u003e2.3. INN and EP\u003c/h2\u003e \u003cp\u003eThe paper identifies the role of green technologies and sustainable practices in IR 5.0. INN in Malaysia has begun to reflect a dual character by promoting economic competitiveness while prioritizing environmental sustainability. The adoption of green technology in energy and waste management is a testament to this trend. The Malaysian Green Technology Corporation (GreenTech Malaysia) is instrumental in promoting these initiatives, aligning with global trends towards sustainability (Khan, Teng, \u0026amp; Khan, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Khan, Teng, Khan, \u0026amp; Khan, \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2019\u003c/span\u003e; Kocoglu, Jahanger, Awan, Barak, \u0026amp; Balsalobre-Lorente, \u003cspan citationid=\"CR26\" class=\"CitationRef\"\u003e2023\u003c/span\u003e; Le, Nguyen, \u0026amp; Phan, \u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e \u003c/div\u003e"},{"header":"3. Methodology","content":"\u003cdiv id=\"Sec7\" class=\"Section2\"\u003e \u003ch2\u003e3.1. Data Collection\u003c/h2\u003e \u003cp\u003eGDP growth rates, INN indices, and pollution data from Malaysian governmental and international databases. The study utilizes annual data from 2000 to 2022 from the Department of Statistics Malaysia, the World Bank, and other relevant sources. Key variables include the GDP growth rate, R\u0026amp;D expenditure, patent applications as a proxy for innovation, and environmental indicators such as CO2 emissions and pollution index scores. This study examines the interconnection between INN, EG, EP, and RE in Malaysia. A mixed-methods approach was employed. The study draws on a range of quantitative and qualitative data sources, including government reports, academic studies, and expert interviews.\u003c/p\u003e \u003cp\u003eQuantitative data encompass economic indicators such as GDP growth, INN indices, and pollution levels over the past two decades. Qualitative data, including expert insights and case studies, provide a nuanced understanding of the dynamics at play. The research also includes a comprehensive review of government policies and initiatives on RE adoption and environmental protection. These policies are evaluated for their impact on the nexus of INN, EG, and environmental sustainability.\u003c/p\u003e \u003cp\u003eThe manuscript uses time-series data from Malaysian industries over the past two decades. This paper employs VECM to capture the dynamic interplay between INN, EG, and EP. The causality tests will identify the direction of the relationship, providing evidence of whether INN and EG precede changes in EP or vice versa.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"BlockQuote\"\u003e \u003cp\u003eFigure\u0026nbsp;\u003cspan refid=\"Fig1\" class=\"InternalRef\"\u003e1\u003c/span\u003e. Nexus of INN, EG, and CO2 regarding RE consumption\u003c/p\u003e \u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec8\" class=\"Section2\"\u003e \u003ch2\u003e3.2. Econometric Models\u003c/h2\u003e \u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e presents the independent variables and dependent variables in the model.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eThe variables related to the dependent variables of the regression model\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"6\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eVariables\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eObservation\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eMean\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eStandard Deviation\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eMinimum\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eMaximum\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eYear\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e23\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e2011\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e6.7\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e2000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e2022\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eRE (%)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e23\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e5.030742\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e5.087842\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e2.13846\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e23.16317\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eINN (GII rank)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e23\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e29.91304\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e8.139120\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e37\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e25\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGross Domestic Product (billions USD)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e23\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e250\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e103\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e92.8\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e406\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCO2\u0026nbsp;million tons\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c2\"\u003e \u003cp\u003e23\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e212.3769\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e47.53163\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e126.203\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e278.659\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eTwenty-three observations were compiled as data collected in Malaysia between 2000 and 2022. The graph of RE consumption (%) in Malaysia is presented in Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e. The chart indicates that RE consumption in this country has increased over time, with a particularly notable rate of increase in recent years.\u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003cp\u003eThe graph of gross domestic product (billion US dollars) in Malaysia is presented in Fig.\u0026nbsp;\u003cspan refid=\"Fig3\" class=\"InternalRef\"\u003e3\u003c/span\u003e. The chart indicates that the country's gross domestic product (GDP) has increased over time, albeit at a slower rate in recent years.\u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003cp\u003eThe graph of CO\u003csub\u003e2\u003c/sub\u003e emissions (million tons) in Malaysia is presented in Fig.\u0026nbsp;\u003cspan refid=\"Fig4\" class=\"InternalRef\"\u003e4\u003c/span\u003e. The chart indicates that CO\u003csub\u003e2\u003c/sub\u003e emissions in this country have fluctuated over time, but have increased at a slower rate in recent years.\u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003cp\u003eThis paper used the function of Eq.\u0026nbsp;(1) as follows:\u003c/p\u003e \u003cp\u003eLnY\u0026thinsp;=\u0026thinsp;Bo\u0026thinsp;+\u0026thinsp;B1LnX1\u0026thinsp;+\u0026thinsp;B2LnX2\u0026thinsp;+\u0026thinsp;B3LnX3\u0026thinsp;+\u0026thinsp;ε\u003csub\u003ei,t\u003c/sub\u003e (1)\u003c/p\u003e \u003cp\u003eThe study model used is detailed in the following section.\u003c/p\u003e \u003cp\u003eThe function Y\u0026thinsp;=\u0026thinsp;function (X1, X2, X3\u0026hellip;) was used, in which the dependent and independent variables were the following:\u003c/p\u003e \u003cp\u003eY: the dependent variable of RE consumption, which percentages measure;\u003c/p\u003e \u003cp\u003eX1: the independent variable of the global INN index, measured by rankings.\u003c/p\u003e \u003cp\u003eX2: the independent variable of gross domestic product or EG, which is measured in billions of US dollars;\u003c/p\u003e \u003cp\u003eX3: The CO2 emissions measured by the million tons present EP; The manuscript has the hypothesis in the research as follows:\u003cdiv class=\"BlockQuote\"\u003e\u003cp\u003e \u003cem\u003eH\u003c/em\u003e \u003csub\u003e \u003cem\u003e1\u003c/em\u003e \u003c/sub\u003e: \u003cem\u003eINN positively affects RE consumption.\u003c/em\u003e\u003c/p\u003e\u003cp\u003e \u003cem\u003eH\u003c/em\u003e \u003csub\u003e \u003cem\u003e2\u003c/em\u003e \u003c/sub\u003e: \u003cem\u003eGross domestic product positively affects RE consumption.\u003c/em\u003e\u003c/p\u003e\u003cp\u003e \u003cem\u003eH\u003c/em\u003e \u003csub\u003e \u003cem\u003e3\u003c/em\u003e \u003c/sub\u003e: \u003cem\u003eCO2 hurts RE consumption.\u003c/em\u003e\u003c/p\u003e\u003cp\u003eThe independent variable is presented in Table\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e as follows:\u003c/p\u003e\u003c/div\u003e\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eThe independent and dependent variables used in the paper\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"3\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003eVariable\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u003cem\u003eConcept\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u003cem\u003eRelationship\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eX1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eINN\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e+\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eX2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eGross domestic product\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e+\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eX3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCO2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e-\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eThe definitions and symbols in Table\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e indicate that INN has a positive effect on RE consumption. In contrast, gross domestic product has a positive effect on RE consumption, while CO2 emissions harm RE consumption.\u003c/p\u003e \u003c/div\u003e"},{"header":"4. Results","content":"\u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e presents the regression analysis results for INN (X1), gross domestic product (X2), CO2 (X3), and RE consumption (Y) in Malaysia, spanning the period from 2000 to 2022. According to the adjusted R-squared value of 0.9061, the RE consumption can be explained by 90.61% of the variation in the independent variable.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab3\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eRegression analysis model of INN (X\u003csub\u003e1\u003c/sub\u003e), gross domestic product (X\u003csub\u003e2\u003c/sub\u003e), CO2 (X\u003csub\u003e3\u003c/sub\u003e), and RE consumption (Y) for the period from 2000 to 2022 in Malaysia.\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cem\u003eSource\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u003cem\u003eSS\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u003cem\u003eDf\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u003cem\u003eMS\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u003cem\u003eNumber of obs\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e \u003cp\u003e\u003cem\u003e=\u0026thinsp;23\u003c/em\u003e\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eModel\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e4.62883166\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e1.54294389\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eProb\u0026thinsp;\u0026gt;\u0026thinsp;F\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e \u003cp\u003e=\u0026thinsp;0.0000\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eResidual\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e4.30746984\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e19\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.226708939\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eR-squared\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e \u003cp\u003e=\u0026thinsp;0.9180\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eAdj R-squared\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e \u003cp\u003e=\u0026thinsp;0.9061\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eTotal\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e8.9363015\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e22\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.406195523\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eRoot MSE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e \u003cp\u003e=\u0026thinsp;0.47614\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLn RE\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCoef.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eStd. Err.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eT\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eP\u0026gt;|t|\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colspan=\"2\" nameend=\"c7\" namest=\"c6\"\u003e \u003cp\u003e[95% Conf. Interval]\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLn INN\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.984908 **\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.4019382\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e2.45\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.024\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.1436426\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e1.826175\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLn GDP Current US\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.911195***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1.0852150\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e7.76\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.3601868\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e4.182577\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLn CO2 emissions\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e-0.627827***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1.8766350\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-8.59\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-4.555669\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-3.300015\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e_Cons\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e-48.97611***\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1.5374400\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-9.40\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.000\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e-18.05895\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e-11.62315\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003cem\u003e*** represents 1% significance, respectively\u003c/em\u003e\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003eBased on the regression above, the articles have the function in Eq.\u0026nbsp;(2) as follows:\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003eLnY = -48.97\u0026thinsp;+\u0026thinsp;0.9849LnX1\u0026thinsp;+\u0026thinsp;1.91LnX2\u0026ndash;0.6278LnX3 (2)\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e illustrates the correlation coefficients for the independent variables within the model.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"Yes\" id=\"Tab4\" border=\"1\"\u003e \u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eThe correlation of the independent variables in the model\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e \u003ccolgroup cols=\"4\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eINN\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eGross domestic product\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eCO2\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eINN\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eGross Domestic Product\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.22\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCO2\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e-0.19\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.21\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003e \u003cem\u003eAnalysis of INN's Impact on EG-\u003c/em\u003e The results of this study illuminate the intricate web of factors at play within the nexus of INN, EG, EP, and RE in Malaysia. Key findings include:\u003c/p\u003e \u003cp\u003eINN-Driven EG- Malaysia's EG during IR 5.0 is significantly influenced by technological INNs, particularly in electronics, manufacturing, and digital services. These INNs have contributed to rising GDP figures and increased foreign investment. EP- The rapid industrialization and urbanization have brought about a surge in EP. Air pollution, in particular, has become a significant concern, with increasing levels of greenhouse gas emissions that contribute to global climate change. Water pollution and deforestation are additional challenges that require attention.\u003c/p\u003e \u003cp\u003eRE Transition- The government of Malaysia has recognized the need for a shift towards RE sources. Policies and incentives to develop RE, including solar and wind power, have been implemented. These measures aim to reduce the nation's dependence on fossil fuels and mitigate environmental harm. Challenges of Transition - Despite the initiatives, Malaysia faces several challenges in transitioning to RE. These include the need for infrastructure development, technology adaptation, and financing for clean energy projects. Additionally, there is a need for regulatory frameworks to facilitate the international integration of RE into the national grid.\u003c/p\u003e \u003cp\u003eInitial findings indicate a positive impact of INN on EG across various sectors, with particularly significant effects in the manufacturing and digital services sectors. However, the nexus between EG and EP is more complex, with evidence supporting and refuting the EKC hypothesis in different contexts within Malaysia. The study improves quantitative evidence of the INN-output relationship in Malaysia. The econometric analysis suggests a robust positive correlation between INN (as measured by R\u0026amp;D expenditure and patent applications) and EG. Sub-sector analysis indicates that industries such as electronics, biotechnology, and digital services show the highest sensitivity to INN inputs.\u003c/p\u003e \u003cp\u003eThe paper presents sector-specific analysis and policy implications as follows.\u003c/p\u003e \u003cp\u003e \u003cem\u003eEnvironmental Implications of Economic Expansion -\u003c/em\u003e The manuscript enhances the assessment of pollution levels in relation to economic milestones. The issue is the applicability of the EKC in the Malaysian economic structure. Pollution metrics initially increased with EG, supporting the EKC hypothesis. However, after implementing green policies and INN, the trend shows signs of plateauing or even decreasing pollution levels, suggesting a move towards the downward slope of the EKC.\u003c/p\u003e \u003cp\u003eThe Dual Role of INN: Evidence of INN contributes to both economic efficiency and pollution control, as illustrated by the paper's success stories and challenges within the Malaysian context. INN has contributed to improved energy efficiency and the introduction of cleaner production processes, reflecting its role in addressing environmental issues. The results indicate that investments in green technologies have begun to pay dividends in reducing the environmental impact of economic activities.\u003c/p\u003e"},{"header":"5. Discussions","content":"\u003cp\u003eThe results of this study provoke essential discussions on the future of industrialized nations in the age of IR 5.0. Malaysia's experience provides valuable lessons and insights for other countries undergoing similar transformations. One notable discussion point is the inherent tension between EG and environmental sustainability. While INN drives economic prosperity, it simultaneously poses challenges in terms of environmental degradation. The Malaysian case underscores the need for a balanced approach that leverages INN for growth while ensuring the effective mitigation of pollution and the adoption of RE sources. Another crucial discussion pertains to the role of government policies and incentives. Proactive policies have facilitated Malaysia's shift towards RE, yet the challenges in infrastructure development and technology adoption persist. This issue underscores the importance of comprehensive planning and financial support to ensure a seamless transition.\u003c/p\u003e \u003cp\u003eThe paper proposes a balanced approach to policy-making that fosters INN and economic expansion while prioritizing environmental sustainability. It highlights the role of green technologies and sustainable practices in reconciling these objectives and suggests that Malaysia's path to sustainable industrialization could serve as a model for similar economies. The findings suggest that Malaysia's policy framework, which increasingly integrates INN and environmental considerations, can lead to a sustainable economic model. However, challenges remain, including the need for more robust enforcement of environmental regulations, more significant incentives for clean technology, and promotion of sustainable practices at the corporate and consumer levels.\u003c/p\u003e \u003cp\u003eThe interplay between INN, EG, and environmental protection is a cornerstone for the sustainable development of any nation. Malaysia's focus on IR 5.0 presents challenges and opportunities in this regard.\u003c/p\u003e"},{"header":"6. Conclusion","content":"\u003cp\u003eThe study provides empirical evidence on how Malaysia can navigate the nexus of INN, EG, and EP as part of IR 5.0. It underscores the importance of a cohesive strategy that aligns technological advancements with sustainable development goals, offering a roadmap for Malaysia to emerge as a leader in sustainable industrialization. The case of Malaysia offers valuable insights into the complex interrelationship between INN, EG, EP, and RE. As the nation navigates the challenges of IR 5.0, it exemplifies the promises and perils of technological advancement.\u003c/p\u003e \u003cp\u003eINN has been a driving force behind Malaysia's EG, but this growth has come at the cost of environmental degradation. Pollution levels have surged, affecting air and water quality, ecosystems, and human health. Nevertheless, the government's efforts to promote RE sources and sustainable practices signify a commitment to balancing economic prosperity with environmental stewardship. As Malaysia seeks to harness the benefits of IR 5.0 while mitigating its environmental impact, the lessons learned from this case study can guide policymakers and industries worldwide in their efforts to achieve the same goals. The need for coordinated action, technological INN, and sustainability practices becomes increasingly evident in this age of rapid industrial transformation. Balancing EG and environmental sustainability is an ongoing challenge, and Malaysia's experiences provide a valuable roadmap for navigating this critical nexus.\u003c/p\u003e \u003cp\u003eThe case of Malaysia serves as a poignant example of the nexus of INN, EG, EP, and RE in the context of IR 5.0. It reveals the dynamic and intricate relationship between these elements, providing valuable insights for policymakers and industrial leaders worldwide. As Malaysia continues its journey toward sustainable development, the study emphasizes the importance of integrating innovative technologies and RE solutions into economic strategies. It underscores that the pursuit of EG should be coupled with a commitment to environmental stewardship for long-term prosperity and the well-being of its citizens.\u003c/p\u003e \u003cp\u003eIn conclusion, this research reaffirms the necessity for proactive government policies, infrastructure development, and technology adaptation to facilitate a transition to RE sources. Malaysia's story is a testament to the challenges and opportunities presented by IR 5.0, and it highlights the path forward for nations seeking to strike a harmonious balance between growth, environmental protection, and sustainable energy practices. The nexus of INN, EG, EP, and RE is a critical concern in the age of IR 5.0. Malaysia's case highlights both the opportunities and challenges associated with this transformative era. The country's commitment to INN-driven growth, coupled with a recognition of environmental concerns, exemplifies the balancing act required to navigate this nexus successfully.\u003c/p\u003e \u003cp\u003eAs nations worldwide grapple with the imperatives of economic development and environmental sustainability, the lessons from Malaysia's journey are invaluable. The imperative is to embrace INN while actively addressing the environmental challenges that accompany it. The case of Malaysia serves as a compelling reminder that the pursuit of EG can and should be aligned with environmental protection and RE practices. This research highlights the importance of coordinated efforts and proactive policies, as well as a steadfast commitment to striking a balance between economic growth and environmental sustainability. In the millen of IR 5.0, such equilibrium will be crucial not only for the prosperity of nations but also for the future of our planet.\u003c/p\u003e \u003cp\u003eBuilding upon the insights gained from the case of Malaysia, several key recommendations can be made for countries and regions experiencing the effects of IR 5.0: Sustainable INN- encourage INN that aligns with sustainable development goals. Invest in research and development in renewable technologies, energy-efficient practices, and environmentally friendly industrial processes. Environmental Regulation - Implement and strengthen environmental regulations to monitor and control pollution. Set clear emissions targets and enforce penalties for non-compliance to reduce the environmental impact of EG. Promotion of RE- develop comprehensive strategies for transitioning to RE sources. Provide incentives for the adoption of solar, wind, and other clean energy technologies while also investing in energy storage and grid infrastructure.\u003c/p\u003e \u003cp\u003ePublic Awareness and Education- promote public awareness of the necessity of environmental protection and RE. Engage the public in sustainable practices and encourage behavioral changes. Collaborative Initiatives- collaborate with international organizations, governments, and industries to share best practices and technologies for addressing environmental challenges while fostering INN and EG. In conclusion, Malaysia's experience underscores the significance of INN as a catalyst for economic transformation and environmental stewardship in the era of Industry 5.0. This paper calls for strategically integrating innovative practices into national policy frameworks to facilitate a sustainable economic trajectory.\u003c/p\u003e \u003cp\u003eThis paper highlights the potential for Malaysia to forge a new path in the era of IR 5.0, one that leverages INN for EG while ensuring environmental sustainability. The findings suggest that, with a continued commitment to research, development, and green policies, Malaysia can become a model for sustainable development in the region.\u003c/p\u003e \u003cp\u003eThe evidence presented in this paper indicates that Malaysia is on a path that could reconcile economic expansion with environmental sustainability. Integrating INN into this pathway is critical, as is the role of comprehensive policies that support sustainable practices. The vision for Malaysia to serve as a benchmark for sustainable growth in the context of IR 5.0 is attainable, provided there is a continued commitment to INN, environmental protection, and the development of human capital. The paper concludes by underscoring the potential for Malaysia to not only benefit from IR 5.0 but also to contribute to the global understanding of sustainable industrialization.\u003c/p\u003e"},{"header":"7. Policy Implications","content":"\u003cp\u003eMalaysia's existing policies on INN and green technologies suggest an awareness of the importance of sustainable growth. Initiatives such as the Eleventh Malaysia Plan and the National Green Technology Policy reflect this strategic focus. However, these policies must be implemented consistently and effectively across various levels of government and industry to be truly effective. Corporate Responsibility - Malaysian corporations are beginning to recognize their role in this transition. The ad of Corporate Social Responsibility- CSR practices encompassing sustainability goals is increasing.\u003c/p\u003e \u003cp\u003eNevertheless, a gap exists that needs to be bridged between CSR activities and core business functions responsible for environmental impact. Public Awareness and Education - Public awareness is critical in driving demand for sustainable products and practices. Educational programs can play a pivotal role in shaping public perception and consumer behavior. The paper emphasizes the need for educational reforms that integrate environmental awareness from an early age.\u003c/p\u003e \u003cp\u003eResearch and Development (R\u0026amp;D) - continued investment in R\u0026amp;D is essential for sustaining Innovation-Led growth. Malaysia's investment in R\u0026amp;D, as a percentage of GDP, is compared with that of other Southeast Asian nations, highlighting the need for increased investment to maintain a competitive advantage. Balancing Economic and Environmental Goals: Strategies for Malaysia to Reconcile Economic Imperatives with Environmental Sustainability. The role of government policies, corporate responsibility, and public awareness. INN as a Tool for Sustainable Growth- insights into how Malaysia can integrate innovative practices to foster eco-friendly growth. Recommendations for scaling up successful models within different sectors.\u003c/p\u003e \u003cp\u003eLimitations of the Study - This research has several limitations. One area for improvement is the focus on the case of Malaysia, which, while offering valuable insights, may only be partially generalizable to some countries. Each nation's unique economic, political, and environmental context plays a role in shaping the observed dynamics. Additionally, the data used in this study are subject to potential inaccuracies and biases. For further research, it is essential to conduct comprehensive data collection and analysis to strengthen the robustness of the findings.\u003c/p\u003e \u003cp\u003eThe study acknowledges the limitations inherent in the available data and the scope of econometric models. Further research is suggested to incorporate qualitative data and to explore the role of factors such as foreign direct investment (FDI) and international trade in shaping the INN-EG-environment nexus. Future Research Directions - The complex nature of the interplay between INN, EG, EP, and RE warrants further investigation. Future research could explore:\u003c/p\u003e \u003cp\u003eFuture studies can conduct a comparative analysis of different countries' experiences with IR 5.0 to identify commonalities and differences. The other research can have the long-term environmental and economic impacts of the transition to RE sources. Another study can be the role of innovative technologies in mitigating EP and resource depletion. The future paper can also discuss the effectiveness of international agreements and collaborations in addressing global environmental challenges. The nexus of INN, EG, and EP is not unique to Malaysia, yet the country's response to these interconnected challenges can offer valuable lessons for other emerging economies. As nations worldwide grapple with the demands of sustainable development, the Malaysian case provides insights into the potential for policy, corporate action, and civic engagement to shape outcomes.\u003c/p\u003e \u003cp\u003eThe paper suggests several avenues for future research. One such direction is the exploration of the impact of digitalization on labor markets and income distribution within the context of IR 5.0. Another is examining the role of international collaborations in technology transfer and capacity building for environmental management. Additionally, longitudinal studies tracking the impact of specific policy interventions on INN rates and environmental outcomes could yield granular insights into the efficacy of Malaysia's approach. Comparative studies with nations at similar developmental stages could contextualize Malaysia's experience within a broader spectrum of industrial strategies.\u003c/p\u003e \u003cp\u003eContributions to the Field - This study contributes to the emerging body of literature on IR 5.0 by providing a comprehensive analysis of the multifaceted effects of INN on both economic and environmental spheres in the context of an emerging economy. It also extends the discourse on the EKC hypothesis by incorporating the latest phase of industrial development. It presents evidence that challenges traditional assumptions about the inevitability of environmental degradation in the wake of EG. Furthermore, by integrating econometric analysis with policy review, the study bridges the gap between quantitative research and the practical considerations of policy implementation. It, therefore, offers a model for interdisciplinary research that combines economic theory, environmental science, and policy analysis.\u003c/p\u003e \u003cp\u003eFinal Remarks - In summary, this paper asserts that Malaysia's strategic approach to harnessing the potential of IR 5.0 has set the stage for a sustainable economic trajectory that does not compromise environmental integrity. As nations around the world continue to advance technologically, the findings herein underscore the importance of foresight in policy design and the benefits of embracing INN in support of both economic and environmental objectives.\u003c/p\u003e"},{"header":"Declarations","content":"\u003cp\u003e \u003ch2\u003eCompeting Interests:\u003c/h2\u003e \u003cp\u003eThe authors declare that they have no competing interests.\u003c/p\u003e \u003c/p\u003e\u003cp\u003e \u003ch2\u003eInstitutional Review Board Statement:\u003c/h2\u003e \u003cp\u003eNot applicable.\u003c/p\u003e \u003c/p\u003e\u003cp\u003e \u003ch2\u003eETHICAL APPROVAL:\u003c/h2\u003e \u003cp\u003eThis article does not contain any studies with human participants performed by any of the authors\u003c/p\u003e \u003c/p\u003e \u003cp\u003e \u003cstrong\u003eINFORMED CONSENT:\u003c/strong\u003e \u003cp\u003eThis article does not contain any studies with human participants performed by any of the authors\u003c/p\u003e \u003c/p\u003e\u003ch2\u003eAuthor Contribution\u003c/h2\u003e\u003cp\u003eAuthor ContributionsConceptualization, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Data duration, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Formal analysis, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Funding acquisition, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Investigation, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Methodology, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Project administration, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Resources, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Supervision, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Validation, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Visualization, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Writing\u0026mdash;original draft, V.N.X; T.L.A.N.; H.G.L.; P.X.H.; Writing\u0026mdash;review and editing, V.N.X; T.L.A.N.; H.G.L.; P.X.H. All authors have read and agreed to the published version of the manuscript.\u003c/p\u003e\u003ch2\u003eData Availability\u003c/h2\u003e\u003cp\u003eThe datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request.\u003c/p\u003e"},{"header":"References","content":"\u003cp\u003eAl Afif, R., Ayed, Y., \u0026amp; Maaitah, O. N. (2023). Feasibility and optimal sizing analysis of hybrid renewable energy systems: A case study of Al-Karak, Jordan. \u003cem\u003eRenewable Energy, 204\u003c/em\u003e, 229-249. doi:10.1016/j.renene.2022.12.109\u003c/p\u003e\n\u003cp\u003eAn, Y.-S., Kim, J., Joo, H.-J., Han, G.-w., Kim, H., Lee, W., \u0026amp; Kim, M.-H. (2023). Retrofit of renewable energy systems in existing community for positive energy community. \u003cem\u003eEnergy Reports, 9\u003c/em\u003e, 3733-3744. doi:10.1016/j.egyr.2023.02.055\u003c/p\u003e\n\u003cp\u003eAndersen, O., Gössling, S., Simonsen, M., Walnum, H. 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Nexus of innovation, gross domestic product, CO2, and renewable energy in China. \u003cem\u003eGreen Technologies and Sustainability, 4\u003c/em\u003e(1), 100261. doi:https://doi.org/10.1016/j.grets.2025.100261\u003c/p\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"industrial revolution 5.0 (IR 5.0), economic growth (EG), carbon dioxide emissions (CO2), innovation (INN), renewable energy (RE)","lastPublishedDoi":"10.21203/rs.3.rs-8322051/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8322051/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThe paper examines the dynamic relationship between innovation (INN), economic growth (EG), environmental pollution (EP), and renewable energy (RE) within Malaysia's transition to Industrial Revolution 5.0. By examining the nuanced interactions between technological advancements, GDP growth, and ecological impacts, the study aims to shed light on how Malaysia can pursue sustainable development. This paper uses econometric models and data from Malaysian industries. The paper offers insights into how INN can be leveraged to drive EG while mitigating environmental degradation, thereby contributing to the global discourse on sustainable industrialization. The Industrial Revolution 5.0 ushers in an era of unprecedented technological advancement and EG, yet it poses significant environmental challenges. This paper also examines the interconnection of INN, EG, EP, and RE within Malaysia, a country that has undergone a remarkable industrial transformation. Drawing on a comprehensive literature review, data analysis, and a case study of Malaysia, this research reveals the intricate interplay between INN, economic development, environmental degradation, and the shift towards RE sources. Findings highlight both the opportunities and challenges faced by Malaysia as it seeks to balance economic prosperity with environmental sustainability in the age of Industrial Revolution 5.0.\u003c/p\u003e","manuscriptTitle":"Nexus of Innovation, Economic Growth, Environmental Pollution, and Renewable Energy in Industrial Revolution 5.0: The Case of Malaysia","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2026-01-29 00:38:06","doi":"10.21203/rs.3.rs-8322051/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"78c5216d-7bc3-44f1-8e10-a369b1e9f603","owner":[],"postedDate":"January 29th, 2026","published":true,"recentEditorialEvents":[{"type":"decision","content":"Rejected","date":"2026-05-15T08:38:48+00:00","index":"","fulltext":""}],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[{"id":61799770,"name":"Earth and environmental sciences/Environmental sciences"},{"id":61799771,"name":"Earth and environmental sciences/Environmental social sciences"},{"id":61799772,"name":"Social science/Environmental studies"}],"tags":[],"updatedAt":"2026-05-15T09:16:51+00:00","versionOfRecord":[],"versionCreatedAt":"2026-01-29 00:38:06","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-8322051","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-8322051","identity":"rs-8322051","version":["v1"]},"buildId":"XKTyCvWXoU3ODBz1xrDgd","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}