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How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model

We investigate the impact of urbanization on CO2 emissions by applying the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) in the case of Malaysia over the period of 1970Q1–2011Q4. Empirically, after testing the integrating properties of the variables using the uni...

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Main Authors: Nanthakumar, Loganathan, Khalid, Ahmed, Ahmed Taneem, Muzaffar
Format: Article
Language:English
English
Published: Elsevier Ltd 2016
Subjects:
HB Economic Theory
Online Access:http://eprints.unisza.edu.my/7211/1/FH02-FEMS-16-05608.pdf
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spelling my-unisza-ir.72112022-09-13T05:05:09Z http://eprints.unisza.edu.my/7211/ How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model Nanthakumar, Loganathan Khalid, Ahmed Ahmed Taneem, Muzaffar HB Economic Theory We investigate the impact of urbanization on CO2 emissions by applying the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) in the case of Malaysia over the period of 1970Q1–2011Q4. Empirically, after testing the integrating properties of the variables using the unit root test, we applied the Bayer–Hanck combined cointegration approach to examine the cointegration relationship between the variables. Further, we tested the robustness of the long-run relationship in the presence of structural breaks using ARDL bounds testing approach. The causal relationship between the variables is investigated by applying the VECM Granger causality test. Our results validate the existence of cointegration in the presence of structural breaks. The empirical results exposed that economic growth is a major contributor to CO2 emissions. Besides, energy consumption raises emissions intensity and capital stock boosts energy consumption. Trade openness leads affluence and hence increases CO2 emissions. More importantly, we find that the relationship between urbanization and CO2 emissions is U-shaped i.e. urbanization initially reduces CO2 emissions, but after a threshold level, it increases CO2 emissions. The causality analysis suggests that the urbanization Granger causes CO2 emissions. Elsevier Ltd 2016-05 Article PeerReviewed text en http://eprints.unisza.edu.my/7211/1/FH02-FEMS-16-05608.pdf image en http://eprints.unisza.edu.my/7211/2/FH02-FESP-17-08084.jpg Nanthakumar, Loganathan and Khalid, Ahmed and Ahmed Taneem, Muzaffar (2016) How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model. Renewable and Sustainable Energy Reviews, 57. pp. 83-93. ISSN 1364-0321
institution Universiti Sultan Zainal Abidin
building UNISZA Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Sultan Zainal Abidin
content_source UNISZA Institutional Repository
url_provider https://eprints.unisza.edu.my/
language English
English
topic HB Economic Theory
spellingShingle HB Economic Theory
Nanthakumar, Loganathan
Khalid, Ahmed
Ahmed Taneem, Muzaffar
How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model
description We investigate the impact of urbanization on CO2 emissions by applying the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) in the case of Malaysia over the period of 1970Q1–2011Q4. Empirically, after testing the integrating properties of the variables using the unit root test, we applied the Bayer–Hanck combined cointegration approach to examine the cointegration relationship between the variables. Further, we tested the robustness of the long-run relationship in the presence of structural breaks using ARDL bounds testing approach. The causal relationship between the variables is investigated by applying the VECM Granger causality test. Our results validate the existence of cointegration in the presence of structural breaks. The empirical results exposed that economic growth is a major contributor to CO2 emissions. Besides, energy consumption raises emissions intensity and capital stock boosts energy consumption. Trade openness leads affluence and hence increases CO2 emissions. More importantly, we find that the relationship between urbanization and CO2 emissions is U-shaped i.e. urbanization initially reduces CO2 emissions, but after a threshold level, it increases CO2 emissions. The causality analysis suggests that the urbanization Granger causes CO2 emissions.
format Article
author Nanthakumar, Loganathan
Khalid, Ahmed
Ahmed Taneem, Muzaffar
author_facet Nanthakumar, Loganathan
Khalid, Ahmed
Ahmed Taneem, Muzaffar
author_sort Nanthakumar, Loganathan
title How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model
title_short How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model
title_full How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model
title_fullStr How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model
title_full_unstemmed How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model
title_sort how urbanization affects co2 emissions in malaysia? the application of stirpat model
publisher Elsevier Ltd
publishDate 2016
url http://eprints.unisza.edu.my/7211/1/FH02-FEMS-16-05608.pdf
http://eprints.unisza.edu.my/7211/2/FH02-FESP-17-08084.jpg
http://eprints.unisza.edu.my/7211/
_version_ 1744358591973818368
score 13.211869

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