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Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia

This study uses time-series analysis to investigate the long-run relationships and short-run dynamic interactions between environmental degradation (proxied by CO2 emissions) and the independent variables of consumption (proxied by income level or Gross Domestic Product per capita) and energy consum...

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Main Authors: V. Rasiah, R. Ratneswary, Abdul Hamid, Baharom, Ow, Wilson Chee Seong, Habibullah, Muzafar Shah
Format: Conference or Workshop Item
Language:English
Published: School of Social Sciences, Universiti Sains Malaysia 2012
Online Access:http://psasir.upm.edu.my/id/eprint/51368/1/16-16.pdf
http://psasir.upm.edu.my/id/eprint/51368/
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spelling my.upm.eprints.513682017-04-04T03:34:03Z http://psasir.upm.edu.my/id/eprint/51368/ Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia V. Rasiah, R. Ratneswary Abdul Hamid, Baharom Ow, Wilson Chee Seong Habibullah, Muzafar Shah This study uses time-series analysis to investigate the long-run relationships and short-run dynamic interactions between environmental degradation (proxied by CO2 emissions) and the independent variables of consumption (proxied by income level or Gross Domestic Product per capita) and energy consumption in Malaysia over the period 1971 to 2008. The study applies the multivariate cointegration methodology to establish the possible causal relations between these variables. The cointegration test and the vector error correction model demonstrate the evidence of a positive long-run relationship between consumption and environmental degradation while energy consumption is negatively related to environmental degradation. The long-term elasticity coefficients of the independent variables on environmental degradation display relationships that are theoretically grounded. Further innovations analysis using variance decompositions lends evidence of the dominant influence of consumption and energy consumption in forecasting environmental degradation variance. The study concludes with an examination of policy implications of the findings. School of Social Sciences, Universiti Sains Malaysia 2012 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/51368/1/16-16.pdf V. Rasiah, R. Ratneswary and Abdul Hamid, Baharom and Ow, Wilson Chee Seong and Habibullah, Muzafar Shah (2012) Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia. In: USM-AUT International Conference (UAIC) 2012, 17-18 Nov. 2012, Bayview Beach Resort, Penang, Malaysia. (pp. 895-908).
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This study uses time-series analysis to investigate the long-run relationships and short-run dynamic interactions between environmental degradation (proxied by CO2 emissions) and the independent variables of consumption (proxied by income level or Gross Domestic Product per capita) and energy consumption in Malaysia over the period 1971 to 2008. The study applies the multivariate cointegration methodology to establish the possible causal relations between these variables. The cointegration test and the vector error correction model demonstrate the evidence of a positive long-run relationship between consumption and environmental degradation while energy consumption is negatively related to environmental degradation. The long-term elasticity coefficients of the independent variables on environmental degradation display relationships that are theoretically grounded. Further innovations analysis using variance decompositions lends evidence of the dominant influence of consumption and energy consumption in forecasting environmental degradation variance. The study concludes with an examination of policy implications of the findings.
format Conference or Workshop Item
author V. Rasiah, R. Ratneswary
Abdul Hamid, Baharom
Ow, Wilson Chee Seong
Habibullah, Muzafar Shah
spellingShingle V. Rasiah, R. Ratneswary
Abdul Hamid, Baharom
Ow, Wilson Chee Seong
Habibullah, Muzafar Shah
Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia
author_facet V. Rasiah, R. Ratneswary
Abdul Hamid, Baharom
Ow, Wilson Chee Seong
Habibullah, Muzafar Shah
author_sort V. Rasiah, R. Ratneswary
title Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia
title_short Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia
title_full Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia
title_fullStr Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia
title_full_unstemmed Time series analysis of the impact of consumption and energy use on environmental degradation: evidence from Malaysia
title_sort time series analysis of the impact of consumption and energy use on environmental degradation: evidence from malaysia
publisher School of Social Sciences, Universiti Sains Malaysia
publishDate 2012
url http://psasir.upm.edu.my/id/eprint/51368/1/16-16.pdf
http://psasir.upm.edu.my/id/eprint/51368/
_version_ 1643834935250780160
score 13.211869

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