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The Determinants of CO2 Emissions in Malaysia: A New Aspect

Mui-Yin Chin, Chin-Hong Puah (), Cia-Ling Teo and Justina Joseph
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Mui-Yin Chin: Tunku Abdul Rahman University College, Faculty of Accountancy, Finance and Business, 53300 Kuala Lumpur Malaysia,
Cia-Ling Teo: Tunku Abdul Rahman University College, Faculty of Accountancy, Finance and Business, 53300 Kuala Lumpur Malaysia,
Justina Joseph: Tunku Abdul Rahman University College, Faculty of Accountancy, Finance and Business, 53300 Kuala Lumpur Malaysia

International Journal of Energy Economics and Policy, 2018, vol. 8, issue 1, 190-194

Abstract: In light of the deterioration of environmental quality, this study aims to identify the determinants of CO2 emissions in Malaysia using the ARDL and the decomposition-type threshold methods. This study signifies that economic growth is the main contributor to CO2 emissions which is in line with the theory of the EKC curve. Meanwhile, this study also confirms that vertical intra-industry trade between Malaysia and China together with the bilateral FDI from China to Malaysia are the significant determinants of CO2 emissions in Malaysia. As such, this study suggests that the Malaysian government should monitor the implementation of the green growth strategy to enhance the sustainability of the economic and trade growth without compromising environmental quality.

Keywords: CO2 Emissions; Economic Growth; Vertical Intra-industry Trade (search for similar items in EconPapers)
JEL-codes: F18 F43 Q43 (search for similar items in EconPapers)
Date: 2018
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