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Pollution as one of the determinants of income in Malaysia: Comparison between single and simultaneous equation estimators of an EKC

Pollution as one of the determinants of income in Malaysia: Comparison between single and... This study aims to examine the relationship between economic growth and different indicators of air and water pollution in Malaysia. Air pollution indicators were assessed on a number of measures: carbon monoxide, sulphur dioxide (SO), nitrogen dioxide, ozone and particulate matter (PM) while water pollution indicators were evaluating on a number of measures: biochemical oxygen demand, cadmium and arsenic. The income level per capita gross domestic product per capita were measured from the year 1996 to 2006 quarterly. Being different from the study by Hung and Shaw (2004) and Shen (2006), this study estimates population density as an endogenous variable. It formulates a fourequation simultaneous model for empirical research. Testes for exogeneity with the Hausman test and estimates the simultaneity model using the two‐stages least squares method. The Environmental Kuznets Curve (EKC) hypothesis is supported in the cases of SO and PM, and there are several differences found between single polynomial equation estimators commonly used in EKC literatures and simultaneous equation estimators. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png World Journal of Science, Technology and Sustainable Development Emerald Publishing

Pollution as one of the determinants of income in Malaysia: Comparison between single and simultaneous equation estimators of an EKC

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Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
2042-5945
DOI
10.1108/20425945201000019
Publisher site
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Abstract

This study aims to examine the relationship between economic growth and different indicators of air and water pollution in Malaysia. Air pollution indicators were assessed on a number of measures: carbon monoxide, sulphur dioxide (SO), nitrogen dioxide, ozone and particulate matter (PM) while water pollution indicators were evaluating on a number of measures: biochemical oxygen demand, cadmium and arsenic. The income level per capita gross domestic product per capita were measured from the year 1996 to 2006 quarterly. Being different from the study by Hung and Shaw (2004) and Shen (2006), this study estimates population density as an endogenous variable. It formulates a fourequation simultaneous model for empirical research. Testes for exogeneity with the Hausman test and estimates the simultaneity model using the two‐stages least squares method. The Environmental Kuznets Curve (EKC) hypothesis is supported in the cases of SO and PM, and there are several differences found between single polynomial equation estimators commonly used in EKC literatures and simultaneous equation estimators.

Journal

World Journal of Science, Technology and Sustainable Development – Emerald Publishing

Published: Aug 1, 2010

Keywords: Pollutants; Economic growth; Malaysia; Environmental Kuznets Curve; Simultaneity

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