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The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach

The current study investigates the dynamic relationship between structural changes, real GDP per capita, energy consumption, trade openness, population density, and carbon dioxide (CO2) emissions within the EKC framework over a period 1971–2013. The study used the autoregressive distributed lagged (...

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Main Authors: Ali, W., Abdullah, A., Azam, M.
Format: Article
Published: Springer Verlag 2017
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85017140321&doi=10.1007%2fs11356-017-8888-6&partnerID=40&md5=931a875ab5a7916cc1eb917901ba93b7
http://eprints.utp.edu.my/19519/
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spelling my.utp.eprints.195192018-04-20T06:06:01Z The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach Ali, W. Abdullah, A. Azam, M. The current study investigates the dynamic relationship between structural changes, real GDP per capita, energy consumption, trade openness, population density, and carbon dioxide (CO2) emissions within the EKC framework over a period 1971–2013. The study used the autoregressive distributed lagged (ARDL) approach to investigate the long-run relationship between the selected variables. The study also employed the dynamic ordinary least squared (DOLS) technique to obtain the robust long-run estimates. Moreover, the causal relationship between the variables is explored using the VECM Granger causality test. Empirical results reveal a negative relationship between structural change and CO2 emissions in the long run. The results indicate a positive relationship between energy consumption, trade openness, and CO2 emissions. The study applied the turning point formula of Itkonen (2012) rather than the conventional formula of the turning point. The empirical estimates of the study do not support the presence of the EKC relationship between income and CO2 emissions. The Granger causality test indicates the presence of long-run bidirectional causality between energy consumption, structural change, and CO2 emissions in the long run. Economic growth, openness to trade, and population density unidirectionally cause CO2 emissions. These results suggest that the government should focus more on information-based services rather than energy-intensive manufacturing activities. The feedback relationship between energy consumption and CO2 emissions suggests that there is an ominous need to refurbish the energy-related policy reforms to ensure the installations of some energy-efficient modern technologies. © 2017, Springer-Verlag Berlin Heidelberg. Springer Verlag 2017 Article PeerReviewed https://www.scopus.com/inward/record.uri?eid=2-s2.0-85017140321&doi=10.1007%2fs11356-017-8888-6&partnerID=40&md5=931a875ab5a7916cc1eb917901ba93b7 Ali, W. and Abdullah, A. and Azam, M. (2017) The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach. Environmental Science and Pollution Research, 24 (14). pp. 12723-12739. http://eprints.utp.edu.my/19519/
institution Universiti Teknologi Petronas
building UTP Resource Centre
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Petronas
content_source UTP Institutional Repository
url_provider http://eprints.utp.edu.my/
description The current study investigates the dynamic relationship between structural changes, real GDP per capita, energy consumption, trade openness, population density, and carbon dioxide (CO2) emissions within the EKC framework over a period 1971–2013. The study used the autoregressive distributed lagged (ARDL) approach to investigate the long-run relationship between the selected variables. The study also employed the dynamic ordinary least squared (DOLS) technique to obtain the robust long-run estimates. Moreover, the causal relationship between the variables is explored using the VECM Granger causality test. Empirical results reveal a negative relationship between structural change and CO2 emissions in the long run. The results indicate a positive relationship between energy consumption, trade openness, and CO2 emissions. The study applied the turning point formula of Itkonen (2012) rather than the conventional formula of the turning point. The empirical estimates of the study do not support the presence of the EKC relationship between income and CO2 emissions. The Granger causality test indicates the presence of long-run bidirectional causality between energy consumption, structural change, and CO2 emissions in the long run. Economic growth, openness to trade, and population density unidirectionally cause CO2 emissions. These results suggest that the government should focus more on information-based services rather than energy-intensive manufacturing activities. The feedback relationship between energy consumption and CO2 emissions suggests that there is an ominous need to refurbish the energy-related policy reforms to ensure the installations of some energy-efficient modern technologies. © 2017, Springer-Verlag Berlin Heidelberg.
format Article
author Ali, W.
Abdullah, A.
Azam, M.
spellingShingle Ali, W.
Abdullah, A.
Azam, M.
The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach
author_facet Ali, W.
Abdullah, A.
Azam, M.
author_sort Ali, W.
title The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach
title_short The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach
title_full The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach
title_fullStr The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach
title_full_unstemmed The dynamic relationship between structural change and CO2 emissions in Malaysia: a cointegrating approach
title_sort dynamic relationship between structural change and co2 emissions in malaysia: a cointegrating approach
publisher Springer Verlag
publishDate 2017
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85017140321&doi=10.1007%2fs11356-017-8888-6&partnerID=40&md5=931a875ab5a7916cc1eb917901ba93b7
http://eprints.utp.edu.my/19519/
_version_ 1738656081602674688
score 13.211869

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