Movement towards a low carbon emitted environment: a test of some factors in Malaysia
- 48 Downloads
There exists a high global concern in different nations on environmental sustainability especially at the focal stage of increased economic growth and development process due to high level of environmental degradation and pollution. The major aim of this study was to empirically examine how to minimise carbon emissions (CO2) in Malaysia which are mainly caused by energy production, fossil fuel consumption, population density and economic growth. The study adopted the method of autoregressive distributed lag bound testing approach to analyse the data for the period 1971–2011. The study found that economic growth in Malaysia has a direct relationship with CO2 emissions in both the short run and the long run. Similarly, there is a positive relationship between fossil fuel consumption and CO2 emissions over the same period. Population density was found to have positive impacts on CO2 emissions. Contrarily, the relationship between the activities of energy production and pollution is negative in the long run. The study recommends that a targeted GDP growth rate should be set with the consideration to avoid more environmental pollution. In addition, the positive impact of fossil fuel consumption on the environmental pollution implies that there is a need to make and implement policies that will encourage the use of public transportation system more than private transportations. That is, the unnecessary use of private vehicles should be discouraged in order to reduce the extent of fossil fuel consumption.
KeywordsCO2 emissions Economic growth Fossil fuel consumption
- Akpan, G. E., & Akpan, U. F. (2012). Electricity consumption, carbon emissions and economic growth in Nigeria. International Journal of Energy Economics and Policy, 4, 292–306.Google Scholar
- Dahalan, J., & Jayaraman, T. K. (2006). Monetary and fiscal policies: A test of effectiveness. Pacific Economic Bulletin, 21, 94–102.Google Scholar
- EIA. (2014). Country overview: Malaysia energy analysis. https://www.eia.gov/beta/international/analysis.cfm?iso=MYS.
- Hui, T. S., Abdurrahman, S., & Labadin, J. (2012). Statistical modelling of CO2 emissions in Malaysia and Thailand. International Journal on Advanced Science Engineering Information Technology, 5, 10–15.Google Scholar
- Lean, H., & Smyth, R. (2013). Disaggregated energy demand by fuel type and economic growth in Malaysia. Discussion paper 43/13 series, Department of economics Monash University.Google Scholar
- Lise, W. (2006). Decomposition of CO2 emissions over 1980–2003 in Turkey. Energy Policy, 34, 1841–1852.Google Scholar
- MEC. (2011). National energy balance: A publication of energy commission, Malaysia.Google Scholar
- MEC. (2012). National energy balance: A publication of Energy commission, Malaysia.Google Scholar
- Narayan, P. K. (2005). The savings and investment nexus for China: Evidence from cointegration tests. Applied Economics, 98, 178–191.Google Scholar
- Nejat, P., Jomehzadeh, F., Taheri, M., Gohari, M., Abd, M., & Majid, M. Z. (2015). A global review of energy consumption, CO2 emissions and policy in the residential sector (with an overview of the top ten CO2 emitting countries). Renewable and Sustainable Energy Reviews, 43, 843–862.CrossRefGoogle Scholar
- Nnaji, C. E., Chukwu, J. O., & Moses, N. (2013). Electricity supply, fossil fuel consumption, CO2 emissions and economic growth: Implications and policy options for sustainable development in Nigeria. International Journal of Energy Economics and Policy, 3, 262–271.Google Scholar
- Pesaran, M. H., & Pesaran, B. (1997). Working with Microfit 4.0: Interactive econometric analysis. Oxford: Oxford University press.Google Scholar
- Pesaran, M. H., Shin, Y., & Smith, R. J. (1996). Testing for the existence of a long run relationship. DAE working paper 9622; University of Cambridge.Google Scholar
- Razak, M. I., Ahmad, I., Bujang, I., Talib, A. H., & Ibrahim, Z. (2013). IPAT—fuzzy model in measuring air pollution: Evidence from Malaysia. American International Journal of Contemporary Research, 6, 62–69.Google Scholar
- Shaari, M. S., Hussaim, N. E., & Isma’i, M. S. (2013). Relationship between energy consumption and economic growth: Empirical evidence for Malaysia. Business Systems Review, 2, 17–28.Google Scholar
- Tan, S. T., Hashim, H., Lim, J. S., Ho, W. S., Lee, C. T., & Yan, J. (2014). Energy and emissions benefits of renewable energy derived from municipal solid waste: Analysis of a low carbon scenario in Malaysia. Applied Energy, 136, 797–804.Google Scholar
- Tiwar, A. K. (2011). Energy consumption, CO2 emissions and economic growth: Evidence from India. Journal of International Business and economy, 12, 85–122.Google Scholar
- Umar, M., Dahalan, J., & Aziz, M. I. (2014). The relationship between inflation and exchange rate volatility in Nigeria (1970–2012): Further evidence. ICESS, 219–232.Google Scholar
- Wahid, I. N., Aziz, A. A., & Mustapha, N. H. (2013). Energy consumption, economic growth and CO2 emissions in selected ASEAN countries. Prosiding Perkem, 2, 758–765.Google Scholar
- WDI. (2015). World development indicators databank. www.worldbank.org.