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Examining the asymmetric effects of stock markets on Malaysia’s air pollution: a nonlinear ARDL approach

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Abstract

The objective of this research is to examine the effects of stock market on air pollution in Malaysia during the period 1980–2017. To realize this aim, a nonlinear autoregressive distributed lag (ARDL) model is constructed. The short results in general revealed that the increase in stock markets will increase CO2 emissions and its significance increases in the long run. Moreover, the decline in stock market will reduce Malaysia’s CO2 emissions but only in the long run. From the outcomes obtained, a number of policy recommendations were provided for the investigated country.

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Notes

  1. For the Kruse (2011), we utilized the software R.

  2. For the nonlinear ARDL, we utilized the EViews software.

  3. The comprehensive information on this test are available in Harvey et al. (2008).

  4. The comprehensive information on these tests are available in Kruse (2011) and Kapetanios et al. (2003).

  5. Consistent with the advice of Kapetanios et al. (2003), we have used the demeaned version of the test.

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Authors and Affiliations

  1. Faculty of Business, Multimedia University, 75450, Bukit Beruang, Melaka, Malaysia

    Usama Al-mulali & Sakiru Adebola Solarin

  2. Faculty of Economics and Administrative Sciences, Cag University, 33800, Mersin, Turkey

    Ilhan Ozturk

Authors
  1. Usama Al-mulali
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  2. Sakiru Adebola Solarin
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  3. Ilhan Ozturk
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Correspondence to Usama Al-mulali.

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Al-mulali, U., Solarin, S.A. & Ozturk, I. Examining the asymmetric effects of stock markets on Malaysia’s air pollution: a nonlinear ARDL approach. Environ Sci Pollut Res 26, 34977–34982 (2019). https://doi.org/10.1007/s11356-019-06710-w

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  • DOI: https://doi.org/10.1007/s11356-019-06710-w

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