Abstract
Malaysia has continued to increase the explosive growth rate of its industries in recent years. The rise of globalization has driven Malaysia’s economic development at the ecosystem level of pollution. This research study explores the relationship of CO 2 emissions, gross domestic product, globalization, industrialization, and trade openness for Malaysia by using annual data for 1971–2016. By applying the ARDL bound testing approach, the estimates infer that CO 2 emissions have steadily risen with high economic growth and affirm the U-shaped environmental Kuznets curve (EKC). Globalization’ index and trade openness surge Malaysian CO 2 emissions. While industrialization has a statistically significant negative impact on CO 2 emissions. The VECM Granger causality infers the unidirectional causality running from economic growth, globalization, industrialization, and trade openness to CO 2 emission in the short-run Finally, this study provides some suggestions to Malaysian policymakers for devising carbon emission reduction strategies. • Relationship of CO 2 emissions, gross domestic product, globalization, industrialization, and trade openness for Malaysia. • ARDL bounds testing approach and VECM. • Suggestions to Malaysian policymakers for devising carbon emission reduction strategies.
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