Abstract
This study attempts to examine the water pollution-economic growth relationship by using the environmental Kuznets curve analysis for the situation in Malaysia. This study estimates a simultaneous equation that is related to the level of pollution, the Gross Domestic Product per capita, and other covariates. Water pollution is measured in terms of Biochemical oxygen demand (BOD), Cadmium (CD) and Arsenic (AS). The per capita Gross Domestic Product was measured quarterly for the period 1996 to 2018. The study output supports the Environmental Kuznets Curve (EKC) hypothesis for all measures of water pollutants examined here. The income equation revealed the negative significant impact of pollution, BOD and physical capital's favorable influence on income. From these expected outcomes it is clear that Malaysia's relevant policies should aim primarily to overcome the pollution problems but should not neglect economic growth sustainability. This would include the implementation of policies that do not disregard the needs of economic growth and development; execute strategies that will contribute to a decrease in greenhouse gas emissions; improve public awareness on environmental issues in Malaysia; give additional incentives to industries that comply with policy requirements; implement advanced and tertiary pollution control measures to decrease pollution; implementation of financial incentives to encourage invest in appropriate technology especially sewerage systems; and development of a solid monitoring and inventory system to be implemented by the relevant government authorities.Keywords: Environmental Kuznets Curve, pollution, Gross Domestic ProductJEL Classifications: O11, Q53, Q54, Q56DOI: https://doi.org/10.32479/ijeep.11571
Highlights
Malaysia is listed as a country with a middle income
This study aims to learn more about the links between economic growth and different water pollution indicators in Malaysia
This study aims to test the endogeneity of different indicators of pollution and economic growth in Malaysia, to test whether the EKC applies to water pollution in Malaysia, to investigate the difference between single polynomial equation estimators and simultaneous equations estimators, to investigate the contribution of pollution to production and to growth and to investigate the determinants of pollution abatement expense
Summary
Malaysia is listed as a country with a middle income. Since the colonial times, Malaysia has been concerned about environmental issues. Water pollution in Malaysia is a serious problem and has an adverse impact on water resource security. One of the main objectives of economic development in Malaysia over the past three decades is growth in urban areas, provided that the country has had a growth rate of about 4.5% since the 1990s; whereas the rise in urbanization has placed upward pressure on energy demand (Che Sulaiman et al, 2021). Including these interaction results will shed more
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