The Influences of Economic Indicators on Environmental Pollution in Malaysia

Authors

  • Foo Shi He
  • Gerald Goh Guan Gan
  • Usama Al-mulali
  • Sakiru Adebola Solarin

Abstract

This study aims to investigate the relationship between environmental degradation (ecological footprint) and economic indicators such as gross domestic product (GDP), financial liberalisation, energy consumption, urbanisation, and trade openness in Malaysia. The use of financial liberalisation is driven by the factor that majority of the previous studies focused on financial development that has a narrow definition. Autoregressive Distributed Lag model (ARDL) and Granger causality test has been used to identify the relationship between the variables from 1978 to 2013. The result shows that EKC (Environmental Kuznets curve) model does not apply in Malaysia due to the U-shape relationship between financial liberalisation and ecological footprint. Positive relationships are identified between GDP, trade openness, energy consumption and ecological footprint. The results of the study suggest that Malaysia should improve its energy efficiency and focus more on its environmental well-being while increasing its GDP.Keywords: Financial liberalisation, Ecological Footprint, MalaysiaJEL Classifications: Q5, P28, O16, G18, P34, P43DOI: https://doi.org/10.32479/ijeep.7489

Downloads

Download data is not yet available.

Downloads

Published

2019-02-14

How to Cite

He, F. S., Gan, G. G. G., Al-mulali, U., & Solarin, S. A. (2019). The Influences of Economic Indicators on Environmental Pollution in Malaysia. International Journal of Energy Economics and Policy, 9(2), 123–131. Retrieved from https://mail.econjournals.com/index.php/ijeep/article/view/7489

Issue

Vol. 9 No. 2 (2019)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.