Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations
This study provides new evidence regarding the effects of oil price shocks on sectoral environmental indicators. We used annual time series data for the period 1983–2014 and employed the autoregressive distributed lag (ARDL) modelling approach to estimate the long-run impact of oil price shocks on s...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Kasetsart University Research and Development Institute
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/88517/ http://psasir.upm.edu.my/id/eprint/88517/1/Does%20oil%20price%20shocks%20mitigate%20sectoral%20CO2%20emission%20in%20Malaysia.pdf |
| _version_ | 1848860636115632128 |
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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 | This study provides new evidence regarding the effects of oil price shocks on sectoral environmental indicators. We used annual time series data for the period 1983–2014 and employed the autoregressive distributed lag (ARDL) modelling approach to estimate the long-run impact of oil price shocks on sectoral CO2 emissions. We found a negative relationship between oil price shocks and CO2 emissions in all sectors; namely, manufacturing and construction, agriculture, transportation, and the oil and gas sectors. This suggests that higher oil price can mitigate sectoral CO2 emissions while lower oil price can increase sectoral CO2 emissions. Generally, income exerts a positive impact on sectoral CO2 emissions, implying that an increase in the level of income invokes sectoral CO2 emissions. However, the level of capital and labour were found to mitigate sectoral CO2 emissions in Malaysia. Thus, we recommend contractionary fiscal measures on oil-related products during lower oil prices. |
| first_indexed | 2025-11-15T12:48:23Z |
| format | Article |
| id | upm-88517 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:48:23Z |
| publishDate | 2020 |
| publisher | Kasetsart University Research and Development Institute |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-885172021-12-22T02:28:44Z http://psasir.upm.edu.my/id/eprint/88517/ Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations Maji, Ibrahim Kabiru Habibullah, Muzafar Shah Saari, Mohd Yusof This study provides new evidence regarding the effects of oil price shocks on sectoral environmental indicators. We used annual time series data for the period 1983–2014 and employed the autoregressive distributed lag (ARDL) modelling approach to estimate the long-run impact of oil price shocks on sectoral CO2 emissions. We found a negative relationship between oil price shocks and CO2 emissions in all sectors; namely, manufacturing and construction, agriculture, transportation, and the oil and gas sectors. This suggests that higher oil price can mitigate sectoral CO2 emissions while lower oil price can increase sectoral CO2 emissions. Generally, income exerts a positive impact on sectoral CO2 emissions, implying that an increase in the level of income invokes sectoral CO2 emissions. However, the level of capital and labour were found to mitigate sectoral CO2 emissions in Malaysia. Thus, we recommend contractionary fiscal measures on oil-related products during lower oil prices. Kasetsart University Research and Development Institute 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/88517/1/Does%20oil%20price%20shocks%20mitigate%20sectoral%20CO2%20emission%20in%20Malaysia.pdf Maji, Ibrahim Kabiru and Habibullah, Muzafar Shah and Saari, Mohd Yusof (2020) Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations. Kasetsart Journal of Social Sciences, 41 (3). 633 - 640. ISSN 2452-3151 https://so04.tci-thaijo.org/ 10.34044/j.kjss.2020.41.3.28 |
| spellingShingle | Maji, Ibrahim Kabiru Habibullah, Muzafar Shah Saari, Mohd Yusof Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations |
| title | Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations |
| title_full | Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations |
| title_fullStr | Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations |
| title_full_unstemmed | Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations |
| title_short | Does oil price shocks mitigate sectoral CO2 emission in Malaysia? evidence from ARDL estimations |
| title_sort | does oil price shocks mitigate sectoral co2 emission in malaysia? evidence from ardl estimations |
| url | http://psasir.upm.edu.my/id/eprint/88517/ http://psasir.upm.edu.my/id/eprint/88517/ http://psasir.upm.edu.my/id/eprint/88517/ http://psasir.upm.edu.my/id/eprint/88517/1/Does%20oil%20price%20shocks%20mitigate%20sectoral%20CO2%20emission%20in%20Malaysia.pdf |