The Determinants of Carbon Dioxide Emissions in Malaysia and Singapore

Norimah Rambeli (), Dayang Affizah Awang Marikan (), Emilda Hashim (), Siti Zubaidah Mohd. Ariffin (), Asmawi Hashim () and Jan M. Podivinsky ()
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Norimah Rambeli: Economics Department Faculty Management and Economics Universiti Pendidikan Sultan Idris 35900 Tanjong Malim Perak MALAYSIA.
Dayang Affizah Awang Marikan: Economics Department Faculty Economics and Business Universiti Malaysia Sarawak 94300 Kota Samarahan Sarawak MALAYSIA.
Emilda Hashim: Economics Department Faculty Management and Economics Universiti Pendidikan Sultan Idris 35900 Tanjong Malim Perak MALAYSIA.
Siti Zubaidah Mohd. Ariffin: Department of Business Managemant and Entrepreneurship Faculty Management and Economics Universiti Pendidikan Sultan Idris 35900 Tanjong Malim Perak MALAYSIA.
Asmawi Hashim: Economics Department Faculty Management and Economics Universiti Pendidikan Sultan Idris 35900 Tanjong Malim Perak MALAYSIA.
Jan M. Podivinsky: Economics Division, Social Sciences University of Southampton Southampton, SO17 1BJ England UNITED KINGDOM.

Jurnal Ekonomi Malaysia, 2021, vol. 55, issue 2, 107-119

Abstract: The focal aim of this paper is to examine the relationship between total energy consumption, Gross Domestic Product, urbanization, trade openness and financial development on carbon dioxide (CO2) emissions. The study focuses on two selected ASEAN countries namely, Malaysia and Singapore, due to their major contribution in CO2 emissions among other ASEAN countries, after Brunei. This study adopts the quarterly time series data from Q1:2010 to Q1:2020. By utilizing the linear ARDL method, the presence of a positive and long-term relationship was confirmed between the variables for both countries. The findings also validate the Environment Kuznets hypothesis namely, that CO2 emissions will continue to rise until the national income reaches optimum point and beyond this environment quality will begin to improve. The results established that financial development helps to reduce CO2 emissions in both the short- and long-run. Further, trade openness tends to reduce CO2 in Malaysia. For Singapore however, it reduces CO2 in the short-run but not in the long-run. In general the study reveals that the relationship between emissions of CO2 and economic development is U-shaped, for both countries. For future sustainable environment the study implies that specific financial planning towards green technology is necessary to sustain a better environment. Economic growth of the country is therefore more meaningful if accompanied with a sustainable environment for future generations.

Keywords: Carbon dioxide emissions; Energy consumption; Environment Kuznets hypothesis; Financial development; trade openness (search for similar items in EconPapers)
JEL-codes: C32 O44 P48 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:55:y:2021:i:2:p:107-119

DOI: 10.17576/JEM-2021-5502-9

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