How does carbon emission affect the economy?
The objective of the study is to determine the effect of carbon (CO2) emissions, energy consumption and the usage of renewable energy on the Gross Domestic Product. Using Malaysian data from 1990 to 2020, this study employs multivariate VAR estimation, namely the impulse response function and the To...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2023
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| Online Access: | http://journalarticle.ukm.my/22009/ http://journalarticle.ukm.my/22009/1/JeM_12.pdf |
| _version_ | 1848815493270470656 |
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| author | Kam, Andrew Jia Y Devadason, Evelyn S. |
| author_facet | Kam, Andrew Jia Y Devadason, Evelyn S. |
| author_sort | Kam, Andrew Jia Y |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | The objective of the study is to determine the effect of carbon (CO2) emissions, energy consumption and the usage of renewable energy on the Gross Domestic Product. Using Malaysian data from 1990 to 2020, this study employs multivariate VAR estimation, namely the impulse response function and the Toda-Yamamoto Granger causality method to identify the relationships between the variables. The findings show a significant and reciprocal relationship between GDP and energy use. However, the consumption of renewable energy has little impact on the GDP due to the country's low levels of renewable energy consumption in comparison to its usage of fossil fuels. Since renewable energy plays a critical part in lowering carbon emissions, its usage needs to be intensified to fully have an impact on the economy. Hence, policies to reduce carbon emissions, such as incentives for adopting green technology and production standards, should be emphasized. |
| first_indexed | 2025-11-15T00:50:51Z |
| format | Article |
| id | oai:generic.eprints.org:22009 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:50:51Z |
| publishDate | 2023 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:220092023-08-07T03:31:46Z http://journalarticle.ukm.my/22009/ How does carbon emission affect the economy? Kam, Andrew Jia Y Devadason, Evelyn S. The objective of the study is to determine the effect of carbon (CO2) emissions, energy consumption and the usage of renewable energy on the Gross Domestic Product. Using Malaysian data from 1990 to 2020, this study employs multivariate VAR estimation, namely the impulse response function and the Toda-Yamamoto Granger causality method to identify the relationships between the variables. The findings show a significant and reciprocal relationship between GDP and energy use. However, the consumption of renewable energy has little impact on the GDP due to the country's low levels of renewable energy consumption in comparison to its usage of fossil fuels. Since renewable energy plays a critical part in lowering carbon emissions, its usage needs to be intensified to fully have an impact on the economy. Hence, policies to reduce carbon emissions, such as incentives for adopting green technology and production standards, should be emphasized. Penerbit Universiti Kebangsaan Malaysia 2023 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/22009/1/JeM_12.pdf Kam, Andrew Jia Y and Devadason, Evelyn S. (2023) How does carbon emission affect the economy? Jurnal Ekonomi Malaysia, 57 (1). pp. 1-14. ISSN 0127-1962 https://www.ukm.my/jem/view-articles/ |
| spellingShingle | Kam, Andrew Jia Y Devadason, Evelyn S. How does carbon emission affect the economy? |
| title | How does carbon emission affect the economy? |
| title_full | How does carbon emission affect the economy? |
| title_fullStr | How does carbon emission affect the economy? |
| title_full_unstemmed | How does carbon emission affect the economy? |
| title_short | How does carbon emission affect the economy? |
| title_sort | how does carbon emission affect the economy? |
| url | http://journalarticle.ukm.my/22009/ http://journalarticle.ukm.my/22009/ http://journalarticle.ukm.my/22009/1/JeM_12.pdf |