Environmental Kuznets curve and energy consumption in Malaysia: A cointegration approach

Behnaz Saboori*, Jamalludin Sulaiman, Saidatulakmal Mohd

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

45 Citations (Scopus)

Abstract

This study examines the long- and short-run relationship between carbon dioxide (CO2) emissions, economic growth, energy consumption, foreign trade, and urbanization based on the Environmental Kuznets Curve (EKC) hypothesis in Malaysia for the period 1980-2008. This study employs the Autoregressive Distributed Lag (ARDL) methodology for empirical analysis. The results obtained suggest the existence of three forms of long-run relationships among variables when CO2 emissions, foreign trade, and urbanization are the dependent variables. The long-run results support the EKC hypothesis, which assumes an inverted U-shaped relationship between income and environmental degradation. Moreover, both energy consumption and urbanization are found to have positive effects on CO2 emissions in the long run, while trade has a negative effect on CO2 emissions in both short and long runs. The stability of the variables in the estimated model is also examined. Results suggest that the estimated model is stable over the study period.

Original languageEnglish
Pages (from-to)861-867
Number of pages7
JournalEnergy Sources, Part B: Economics, Planning and Policy
Volume11
Issue number9
DOIs
Publication statusPublished - Sep 20 2016

Keywords

  • CO emissions
  • Energy consumption
  • Environmental Kuznets curve

ASJC Scopus subject areas

  • Chemical Engineering(all)
  • Fuel Technology
  • Energy Engineering and Power Technology

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