Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia

This paper examines the dynamic relationship between income, energy use and carbon dioxide (CO2) emissions in Malaysia using time-series data during 1975 to 2011. This study also attempts to validate the environmental Kuznet curve (EKC) hypothesis. Applying a multivariate model of income, energy co...

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Main Authors: A.A., Azlina, Law, Siong Hook, Nik Hashim, Nik Mustapha
Format: Article
Language:English
Published: Elsevier Ltd. 2014
Subjects:
Online Access:http://ir.unimas.my/id/eprint/9954/
http://ir.unimas.my/id/eprint/9954/7/Dynamic%20linkages.pdf
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author A.A., Azlina
Law, Siong Hook
Nik Hashim, Nik Mustapha
author_facet A.A., Azlina
Law, Siong Hook
Nik Hashim, Nik Mustapha
author_sort A.A., Azlina
building UNIMAS Institutional Repository
collection Online Access
description This paper examines the dynamic relationship between income, energy use and carbon dioxide (CO2) emissions in Malaysia using time-series data during 1975 to 2011. This study also attempts to validate the environmental Kuznet curve (EKC) hypothesis. Applying a multivariate model of income, energy consumption in the transportation sector, carbon emissions, structural change in the economy and renewable energy use, the empirical evidence confirmed that there is a long-run relationship between the variables as shown by the result of co-integration analysis. The results indicate that the inverted U-shape EKC hypothesis does not fully agree with the theory. The coefficient of squared GDP is not statistically different from zero. The time duration and the annual data used for the present study do not seem to strongly validate the existence of EKC hypothesis in the case of Malaysia. Causality test shows that the relationship between GDP and CO2 is unidirectional. The Granger causality test results reveal that emissions Granger-cause income, energy consumption and renewable energy use. Moreover, we find that income Granger-causes energy consumption and renewable energy use, and both structural change and renewable energy use Granger-cause energy consumption in road transportation.
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spelling unimas-99542022-07-05T04:11:06Z http://ir.unimas.my/id/eprint/9954/ Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia A.A., Azlina Law, Siong Hook Nik Hashim, Nik Mustapha HE Transportation and Communications This paper examines the dynamic relationship between income, energy use and carbon dioxide (CO2) emissions in Malaysia using time-series data during 1975 to 2011. This study also attempts to validate the environmental Kuznet curve (EKC) hypothesis. Applying a multivariate model of income, energy consumption in the transportation sector, carbon emissions, structural change in the economy and renewable energy use, the empirical evidence confirmed that there is a long-run relationship between the variables as shown by the result of co-integration analysis. The results indicate that the inverted U-shape EKC hypothesis does not fully agree with the theory. The coefficient of squared GDP is not statistically different from zero. The time duration and the annual data used for the present study do not seem to strongly validate the existence of EKC hypothesis in the case of Malaysia. Causality test shows that the relationship between GDP and CO2 is unidirectional. The Granger causality test results reveal that emissions Granger-cause income, energy consumption and renewable energy use. Moreover, we find that income Granger-causes energy consumption and renewable energy use, and both structural change and renewable energy use Granger-cause energy consumption in road transportation. Elsevier Ltd. 2014 Article NonPeerReviewed text en http://ir.unimas.my/id/eprint/9954/7/Dynamic%20linkages.pdf A.A., Azlina and Law, Siong Hook and Nik Hashim, Nik Mustapha (2014) Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia. Energy Policy, 73. pp. 598-606. ISSN 0301-4215 http://www.sciencedirect.com/science/article/pii/S0301421514003619 http://dx.doi.org/10.1016/j.enpol.2014.05.046
spellingShingle HE Transportation and Communications
A.A., Azlina
Law, Siong Hook
Nik Hashim, Nik Mustapha
Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia
title Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia
title_full Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia
title_fullStr Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia
title_full_unstemmed Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia
title_short Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia
title_sort dynamic linkages among transport energy consumption, income and co2 emission in malaysia
topic HE Transportation and Communications
url http://ir.unimas.my/id/eprint/9954/
http://ir.unimas.my/id/eprint/9954/
http://ir.unimas.my/id/eprint/9954/
http://ir.unimas.my/id/eprint/9954/7/Dynamic%20linkages.pdf