Financial development and sectoral CO2 emissions in Malaysia
The paper examines the impacts of financial development on sectoral carbon emissions (CO2) for environmental quality in Malaysia. Since the financial sector is considered as one of the sectors that will contribute to Malaysian economy to become a developed country by 2020, we utilize a cointegration...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Springer Verlag
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/61886/ http://psasir.upm.edu.my/id/eprint/61886/1/Financial%20development%20and%20sectoral%20CO2%20emissions%20in%20Malaysia.pdf |
| _version_ | 1848854510675427328 |
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| author | Maji, Ibrahim Kabiru Habibullah, Muzafar Shah Saari, Mohd Yusof |
| author_facet | Maji, Ibrahim Kabiru Habibullah, Muzafar Shah Saari, Mohd Yusof |
| author_sort | Maji, Ibrahim Kabiru |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The paper examines the impacts of financial development on sectoral carbon emissions (CO2) for environmental quality in Malaysia. Since the financial sector is considered as one of the sectors that will contribute to Malaysian economy to become a developed country by 2020, we utilize a cointegration method to investigate how financial development affects sectoral CO2emissions. The long-run results reveal that financial development increases CO2 emissions from the transportation and oil and gas sector and reduces CO2 emissions from manufacturing and construction sectors. However, the elasticity of financial development is not significant in explaining CO2 emissions from the agricultural sector. The results for short-run elasticities were also consistent with the long-run results. We conclude that generally, financial development increases CO2 emissions and reduces environmental quality in Malaysia. |
| first_indexed | 2025-11-15T11:11:01Z |
| format | Article |
| id | upm-61886 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:11:01Z |
| publishDate | 2017 |
| publisher | Springer Verlag |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-618862019-02-26T03:00:50Z http://psasir.upm.edu.my/id/eprint/61886/ Financial development and sectoral CO2 emissions in Malaysia Maji, Ibrahim Kabiru Habibullah, Muzafar Shah Saari, Mohd Yusof The paper examines the impacts of financial development on sectoral carbon emissions (CO2) for environmental quality in Malaysia. Since the financial sector is considered as one of the sectors that will contribute to Malaysian economy to become a developed country by 2020, we utilize a cointegration method to investigate how financial development affects sectoral CO2emissions. The long-run results reveal that financial development increases CO2 emissions from the transportation and oil and gas sector and reduces CO2 emissions from manufacturing and construction sectors. However, the elasticity of financial development is not significant in explaining CO2 emissions from the agricultural sector. The results for short-run elasticities were also consistent with the long-run results. We conclude that generally, financial development increases CO2 emissions and reduces environmental quality in Malaysia. Springer Verlag 2017-03 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/61886/1/Financial%20development%20and%20sectoral%20CO2%20emissions%20in%20Malaysia.pdf Maji, Ibrahim Kabiru and Habibullah, Muzafar Shah and Saari, Mohd Yusof (2017) Financial development and sectoral CO2 emissions in Malaysia. Environmental Science and Pollution Research, 24 (8). 7160 - 7176. ISSN 0944-1344; ESSN: 1614-7499 https://link.springer.com/article/10.1007/s11356-016-8326-1 10.1007/s11356-016-8326-1 |
| spellingShingle | Maji, Ibrahim Kabiru Habibullah, Muzafar Shah Saari, Mohd Yusof Financial development and sectoral CO2 emissions in Malaysia |
| title | Financial development and sectoral CO2 emissions in Malaysia |
| title_full | Financial development and sectoral CO2 emissions in Malaysia |
| title_fullStr | Financial development and sectoral CO2 emissions in Malaysia |
| title_full_unstemmed | Financial development and sectoral CO2 emissions in Malaysia |
| title_short | Financial development and sectoral CO2 emissions in Malaysia |
| title_sort | financial development and sectoral co2 emissions in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/61886/ http://psasir.upm.edu.my/id/eprint/61886/ http://psasir.upm.edu.my/id/eprint/61886/ http://psasir.upm.edu.my/id/eprint/61886/1/Financial%20development%20and%20sectoral%20CO2%20emissions%20in%20Malaysia.pdf |