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The Determinants of CO2 Emissions in Malaysia: A New Aspect

Author

Listed:
  • Mui-Yin Chin

    (Tunku Abdul Rahman University College, Faculty of Accountancy, Finance and Business, 53300 Kuala Lumpur Malaysia,)

  • Chin-Hong Puah

    (Universiti Malaysia Sarawak, Faculty of Economics and Business, 94300 Kota Samarahan, Malaysia,)

  • Cia-Ling Teo

    (Tunku Abdul Rahman University College, Faculty of Accountancy, Finance and Business, 53300 Kuala Lumpur Malaysia,)

  • Justina Joseph

    (Tunku Abdul Rahman University College, Faculty of Accountancy, Finance and Business, 53300 Kuala Lumpur Malaysia)

Abstract

In light of the deterioration of environmental quality, this study aims to identify the determinants of CO2 emissions in Malaysia using the ARDL and the decomposition-type threshold methods. This study signifies that economic growth is the main contributor to CO2 emissions which is in line with the theory of the EKC curve. Meanwhile, this study also confirms that vertical intra-industry trade between Malaysia and China together with the bilateral FDI from China to Malaysia are the significant determinants of CO2 emissions in Malaysia. As such, this study suggests that the Malaysian government should monitor the implementation of the green growth strategy to enhance the sustainability of the economic and trade growth without compromising environmental quality.

Suggested Citation

  • Mui-Yin Chin & Chin-Hong Puah & Cia-Ling Teo & Justina Joseph, 2018. "The Determinants of CO2 Emissions in Malaysia: A New Aspect," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 190-194.
    • Handle: RePEc:eco:journ2:2018-01-23
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    References listed on IDEAS

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    Cited by:

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    2. Adeel-Farooq, Rana Muhammad & Riaz, Muhammad Faraz & Ali, Tariq, 2021. "Improving the environment begins at home: Revisiting the links between FDI and environment," Energy, Elsevier, vol. 215(PB).
    3. Nuno Carlos Leitão, 2021. "Testing the Role of Trade on Carbon Dioxide Emissions in Portugal," Economies, MDPI, vol. 9(1), pages 1-15, February.
    4. Asif Raihan & Rawshan Ara Begum & Mohd Nizam Mohd Said & Joy Jacqueline Pereira, 2022. "Relationship between economic growth, renewable energy use, technological innovation, and carbon emission toward achieving Malaysia’s Paris agreement," Environment Systems and Decisions, Springer, vol. 42(4), pages 586-607, December.
    5. Nuno Carlos Leitão & Jeremiás Máté Balogh, 2020. "The impact of intra-industry trade on carbon dioxide emissions: The case of the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(5), pages 203-214.
    6. Urszula Mentel & Elżbieta Wolanin & Mansur Eshov & Raufhon Salahodjaev, 2022. "Industrialization and CO 2 Emissions in Sub-Saharan Africa: The Mitigating Role of Renewable Electricity," Energies, MDPI, vol. 15(3), pages 1-12, January.

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    More about this item

    Keywords

    CO2 Emissions; Economic Growth; Vertical Intra-industry Trade;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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