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THE RELATIONSHIP BETWEEN ENERGY USE, ECONOMIC GROWTH, AND CO2 EMISSION IN MALAYSIA

THE RELATIONSHIP BETWEEN ENERGY USE, ECONOMIC GROWTH, AND CO2 EMISSION IN MALAYSIA This paper aims to examine the relationship between CO2 emission, economic growth, and energy use in Malaysia. The Johansen co-integration model was then applied. The results show that one co-integrating equation exists, thus implying the long-term relationships between carbon dioxide emission, energy consumption, and economic growth and the results are affirmed by the VECM test. The results of the Granger causality model show that in Malaysia, energy use influence economic growth and also carbon dioxide emission. The findings in our study are highly important in policy implementation. Energy consumption can trigger environmental problems in Malaysia. Nevertheless, energy conservation policies remain complex in Malaysia. Increasing energy consumption to enhance economic growth can escalate carbon dioxide emission. JEL Codes: N7; O13; P28; Q43 Keywords: energy consumption; economic growth; CO2 emission. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Economics, Management, and Financial Markets Addleton Academic Publishers

THE RELATIONSHIP BETWEEN ENERGY USE, ECONOMIC GROWTH, AND CO2 EMISSION IN MALAYSIA

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Publisher
Addleton Academic Publishers
Copyright
© 2009 Addleton Academic Publishers
ISSN
1842-3191
eISSN
1938-212X
Publisher site
See Article on Publisher Site

Abstract

This paper aims to examine the relationship between CO2 emission, economic growth, and energy use in Malaysia. The Johansen co-integration model was then applied. The results show that one co-integrating equation exists, thus implying the long-term relationships between carbon dioxide emission, energy consumption, and economic growth and the results are affirmed by the VECM test. The results of the Granger causality model show that in Malaysia, energy use influence economic growth and also carbon dioxide emission. The findings in our study are highly important in policy implementation. Energy consumption can trigger environmental problems in Malaysia. Nevertheless, energy conservation policies remain complex in Malaysia. Increasing energy consumption to enhance economic growth can escalate carbon dioxide emission. JEL Codes: N7; O13; P28; Q43 Keywords: energy consumption; economic growth; CO2 emission.

Journal

Economics, Management, and Financial MarketsAddleton Academic Publishers

Published: Jan 1, 2014

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