Energy used, economic growth and environmental quality in Malaysia: An Application of ARDL Quadratic Model
Journal Title: IOSR Journal of Humanities and Social Science - Year 2018, Vol 23, Issue 2
Abstract
This paper studies the validation of the environment and energy: the environmental quality, growth, renewable and non-renewable energy used as well as FDI in Malaysia, using time series data for the periods of 1980–2014 with carbon dioxide emissions (CO2) as an indicator for ecological dilapidation. The study employed Autoregressive distributed lag (ARDL) bounds testing method to co-integration is applied. The results of the study confirmed the presence of co-integration between the variables in the long-run path. Though, the diminishing negative effect of growth on the environment, in the long run, confirms the existence of environmental Kuznets curve (EKC’s) is a postulated affiliation between the various indicator of ecological dilapidation and income per capita in Malaysia. Renewable energy and foreign direct investment were the major factors that reduce environmental degradation in Malaysia over the period of the study. The government should, therefore, double its effort to reduce the CO2 carbon dioxide emissions, perhaps through regulatory intervention or mandatory application of renewable energy for certain household segments and industries. For instance, the manufacturing, iron & steel sectors should be given more emphasis to reduce their high consumption of the nonrenewable energy to those which are renewable. The government should introduce some measures and campaign for environmental protection for the future generation as well as to introduce some taxes for the polluters. Another relevant recommendation is by forming industries that depend on slight energy consumption than with high level in productivity.
Authors and Affiliations
SulemanLawal Gambo
Keywords
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- EP ID EP417092
- DOI 10.9790/0837-2302023138.
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