Impact of NILM-based energy efficiency on environmental degradation and kuznets hypothesis analysis

<jats:p>Nonintrusive load monitoring (NILM) breaks down the aggregated electrical consumption data into individual appliances. The feedback of disaggregated data to the consumers enables awareness and behaviour change to conserve electricity, consequently reducing CO2 emissions to the environment. However, the limited literature regarding the impact of NILM and Kuznets hypothesis (EKC) analysis on CO2 emissions reduction has restricted policymakers in developing effective mitigation measures. This work aims to assess the impact of NILM-based based energy efficiency (EE) on environmental improvement. The combined approach of scenario simulation and EKC analysis was adopted to gauge the effectiveness of NILM that leads to sustainable development. The monotonically increase relationship between environmental degradation and economic growth in Malaysia without peaking beyond 2030 implies that the current mitigation measures and policies imposed may not effectively cope with the future power demands for sustainable development. NILM-based EE measures could be a great potential for reducing CO2 emissions by 10.2%. The inverted-U curves and reduced turning points of environmental degradation from the income level of USD 20,063.36 to USD 16,305.19. Therefore, NILM approach can accelerate sustainable development with lower environmental deterioration. The work may beneficial to policymakers to analyse the impact and effectiveness of mitigation measures quantitatively.</jats:p>