Environmental degradation, economic growth and energy consumption: Evidence of the environmental Kuznets curve in Malaysia

This paper tests for the short and long-run relationship between economic growth, carbon dioxide (CO2) emissions and energy consumption, using the Environmental Kuznets Curve (EKC) by employing both the aggregated and disaggregated energy consumption data in Malaysia for the period 1980–2009. The Au...

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Veröffentlicht in:Energy policy Jg. 60; S. 892 - 905
Hauptverfasser: Saboori, Behnaz, Sulaiman, Jamalludin
Format: Journal Article
Sprache:Englisch
Veröffentlicht: Kidlington Elsevier Ltd 01.09.2013
Elsevier
Elsevier Science Ltd
Schlagworte:
Aggregate data
Air pollution caused by fuel industries
Alternative energy
Applied sciences
Carbon dioxide
Carbon dioxide emissions
Carbon emissions
Causality
CO2 emissions
Coal
Economic data
Economic development
Economic growth
Economics
Electric power
Electricity
Emissions
Energy
Energy consumption
Energy economics
Energy policy
Energy resources
Energy sources
Energy. Thermal use of fuels
Environmental degradation
Environmental Kuznets curve
Error correction models
Errors
Exact sciences and technology
General, economic and professional studies
General. Regulations. Norms. Economy
greenhouse gas emissions
issues and policy
Kuznets curve
Malaysia
Metering. Control
Methodology. Modelling
oils
Petroleum
Petroleum industry
Studies
Tests
Malaysia
Asia
Energy consumption
CO2 emissions
Environmental Kuznets curve
Short term
Carbon dioxide
Time series
Econometric model
Autoregressive model
Kuznets curve
CO
Pollutant emission
Long term
Ecological damage
Cointegration
Economic growth
Environment impact
Causality
emissions
ISSN:0301-4215, 1873-6777
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Zusammenfassung:This paper tests for the short and long-run relationship between economic growth, carbon dioxide (CO2) emissions and energy consumption, using the Environmental Kuznets Curve (EKC) by employing both the aggregated and disaggregated energy consumption data in Malaysia for the period 1980–2009. The Autoregressive Distributed Lag (ARDL) methodology and Johansen–Juselius maximum likelihood approach were used to test the cointegration relationship; and the Granger causality test, based on the vector error correction model (VECM), to test for causality. The study does not support an inverted U-shaped relationship (EKC) when aggregated energy consumption data was used. When data was disaggregated based on different energy sources such as oil, coal, gas and electricity, the study does show evidences of the EKC hypothesis. The long-run Granger causality test shows that there is bi-directional causality between economic growth and CO2 emissions, with coal, gas, electricity and oil consumption. This suggests that decreasing energy consumption such as coal, gas, electricity and oil appears to be an effective way to control CO2 emissions but simultaneously will hinder economic growth. Thus suitable policies related to the efficient consumption of energy resources and consumption of renewable sources are required. •We investigated the EKC hypothesis by using Malaysian energy aggregated and disaggregated data.•It was found that the EKC is not supported, using the aggregated data (energy consumption).•However using disaggregated energy data (oil, coal and electricity) there is evidence of EKC.•Causality shows no causal relationship between economic growth and energy consumption in the short-run.•Economic growth Granger causes energy consumption and energy consumption causes CO2 emissions in long-run.
Bibliographie:http://dx.doi.org/10.1016/j.enpol.2013.05.099
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ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2013.05.099