EconPapers    
Economics at your fingertips  
 

Does financial development reduce CO2 emissions in Malaysian economy? A time series analysis

Muhammad Shahbaz, Sakiru Solarin, Haider Mahmood (haidermahmood@hotmail.com) and Mohamed Arouri

Economic Modelling, 2013, vol. 35, issue C, 145-152

Abstract: This study deals with the question whether financial development reduces CO2 emissions or not in case of Malaysia. For this purpose, we apply the bounds testing approach to cointegration between the variables. We establish the presence of significant long-run relationships between CO2 emissions, financial development, energy consumption and economic growth. The empirical evidence also indicates that financial development reduces CO2 emissions. Energy consumption and economic growth add in CO2 emissions. The Granger causality analysis reveals the feedback hypothesis between financial development and CO2 emissions, energy consumption and CO2 emissions and, between CO2 emissions and economic growth.

Keywords: Financial development; CO2 emissions; Cointegration (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (219)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999313002551
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Does Financial Development Reduce CO2 Emissions in Malaysian Economy? A Time Series Analysis (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:35:y:2013:i:c:p:145-152

DOI: 10.1016/j.econmod.2013.06.037

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).

 
Page updated 2025-01-11
Handle: RePEc:eee:ecmode:v:35:y:2013:i:c:p:145-152