CO2 Emissions In Malaysia Research Articles

Forecasting CO2 Emissions in Malaysia Through ARIMA Modelling: Implications for Environmental Policy

Forecasting CO2 Emissions in Malaysia Through ARIMA Modelling: Implications for Environmental Policy

Navigating the nexus: unraveling technological innovation, economic growth, trade openness, ICT, and CO2 emissions through symmetric and asymmetric analysis

In Malaysia’s rapid economic growth and industrialization, environmental degradation and carbon emissions pose significant challenges. As urbanization continues to rise, there is a growing recognition of the imperative to tackle CO2 emissions. Trade openness and globalization drive economic activity but also heighten environmental pressures, including CO2 emissions from transportation and industry. Information communication technology (ICT) usage, shaped by infrastructure and regulations, can either improve energy efficiency or increase energy consumption. The study examines the impacts of economic growth (EG), trade openness (TON), technological innovation (TIN), and ICT on CO2 emissions in Malaysia, using both symmetric and asymmetric methods from 1985 to 2021. While many studies have explored environmental degradation, focusing on CO2 emissions and ecological footprint indicators, only a limited number have delved into the combined impact of sustainable EG, TON, ICT, and TIN on Malaysia’s CO2 emissions. Notably, these studies have often neglected the utilization of both symmetric and asymmetric methodologies. Hence, this study employed auto-regressive distributed lag (ARDL) and non-linear ARDL approaches to investigate the dynamic effects of the studied variables. The key findings from the symmetric analysis demonstrate that EG, TON, and ICT together take part in the increase of CO2 emissions in both the short and long run. Particularly, technological innovation plays a significant role in reducing CO2 emissions in the short term through the adoption of cleaner technologies. However, the results of the NARDL bound test reveal asymmetric long-term consequences of technological innovation, economic growth, and ICT on CO2 emissions. The study underscores the need for CO2 reduction policies in Malaysia, advocating for measures, such as incentivizing cleaner technologies and upgrading energy infrastructure. It also recommends implementing carbon pricing mechanisms for production and trade, alongside awareness campaigns to foster behavioral changes aimed at reducing emissions.

Decoding climate change dynamics in Malaysia: Analysing energy, economic growth, foreign direct investment, and oil prices interplay

AbstractAs a prominent CO2 producer in Southeast Asia, Malaysia is taking steps to mitigate carbon emissions amid its rapid economic expansion. However, there remains a limited understanding of the complex relationships among various factors such as domestic credit (DRC), energy consumption, green technology policy (GTP), oil prices (OPs), and FDI in shaping CO2 emissions. This study addresses this gap by examining both symmetric and asymmetric impacts of these factors—FDI, renewable and non‐renewable energy consumption, OP, GTP, DRC, and gross domestic products (GDP)—on CO2 emissions in Malaysia, considering both short and long‐term effects. Our research, which combines block exogeneity causation with ARDL and non‐linear ARDL cointegration approaches, spans data from 1980 to 2021 and provides several significant discoveries. This study provides support for the Environmental Kuznets curve hypothesis, highlighting the intricate balance between economic growth and environmental conservation. The symmetric findings reveal that factors such as high GDP, FDI, renewable energy consumption, and OP tend to increase emissions, while GTP and DRC have a mitigating effect on CO2 levels over both short and long periods. Moreover, FDI and OP show positive associations with CO2 emissions across various timeframes, whereas non‐renewable energy consumption displays a negative correlation with CO2 emissions. These findings have significant implications for Malaysia's environmental policies and strategies.

An ARDL Modelling Approach to Assess the Dynamic Effects of Economic Development and CO2 Emissions in Malaysia

An ARDL Modelling Approach to Assess the Dynamic Effects of Economic Development and CO2 Emissions in Malaysia

Biodiesel and its potential to mitigate transport-related CO2 emissions

Many studies have concentrated on the energy capacity of biodiesel to reduce CO2 emissions at the aggregate level and not much at the sectoral level. This study addresses this gap and attempts to estimate the impact of the use of palm biodiesel on the transport CO2 emissions in Malaysia during 1990–2019. It also predicts the impact of implementing the B10 blending program (10% biodiesel in diesel fuel) on CO2 emissions from transport in this country. For this purpose, this study uses the dynamic autoregressive distributed lag (ARDL) and Kernel-based regularized least squares. This model can plot and estimate the possible actual changes in biodiesel consumption to predict its impacts on transport CO2 emissions. The results suggest that a one-way Granger causality exists from transport GDP, diesel consumption, and motor petrol consumption to palm biodiesel consumption. An increase of 1% in the use of biodiesel reduces carbon emissions from road transport by 0.004% in the long run, while, in the short run, it is associated with a 0.001% increase in transport CO2 emissions. The simulated results from the dynamic ARDL model suggest that a 10% increase in the share of biodiesel consumption in fuel transport by 2030 would reduce the rate of the increase in road transport carbon emissions. The improvement and management of new technologies in oil palm plantation and harvesting can help increase palm oil production for biofuels and edible oil and to reduce forest replacement and therefore biodiversity and food security.

Green technology, exports, and CO2 emissions in Malaysia

The pressing global effort to tackle CO2 emissions has brought about a strong emphasis on adopting green technology by economies striving for low-carbon development. Within this context, this research investigates the environmental significance of green technology and exports in Malaysia. By examining 30-year data from 1989 to 2019 and utilising the autoregressive distributed lag model (ARDL), this study explores these variables' long-run and short-run effects on Malaysia's environment. The outcomes reveal noteworthy insights: population growth and green technology negatively impact environmental degradation, whereas exports and economic expansion contribute to environmental depletion over the long term. However, the influences of a higher population and exports are inconsequential in the short term. Additionally, the study captures the influences of transient economic challenges, such as the COVID-19 outbreak. Consequently, the study emphasises crucial policy implications for the Malaysian government. Firstly, it strongly recommends increasing investment in sustainable technology, especially within the manufacturing sector, to mitigate the adverse environmental impact of exports. Furthermore, it suggests incentivizing companies to embrace green technology through subsidies for acquiring renewable energy and imposing higher taxes on non-renewable energy sources. Additionally, policymakers are urged to prioritise human capital development by raising public awareness about the dangers of heightened CO2 emissions. Malaysia can leverage its expertise to foster economic expansion without compromising the environment by engaging the working population in environmentally sustainable economic activities. These policy recommendations aim to expedite the shift towards a decarbonised economy, promote sustainable development, and safeguard Malaysia's natural resources.

Do Economic Depressions Contribute to CO2 Emissions? An ARDL Bound Approach

Total carbon dioxide (CO2) emissions are undoubtedly emitted to the environment, humans, ecosystems, and global economic growth. However, less research has examined the effect of economic depression on carbon dioxide emission (CO2), especially in Malaysia. Thus, this study intents to examine the impact of the macroeconomic problems, namely unemployment (UNEMP) and the growing number of people: population (POP), on the CO2 emissions in Malaysia. The study analyzes the data for 28 years, covering the period of 1991–2019, employing a bound ARDL model as an estimation method. The time series data were sourced from the World Bank Development Indicators database. The finding from the study shows that CO2 emissions, POP, and UNEMP have a long-term cointegration. Under this situation, all variables indicated; UNEMP and POP lead to environmental degradation in Malaysia in the long run. The impact of both UNEMP and POP on CO2 emissions is positive. Moreover, it is also found that the damage of economic depression will take only around one year and a month on CO2 emissions. Thus, based on this novel finding, a comprehensive set of economic policies is required to ensure our economy is in good condition and hence suggested for maintaining the environmental quality.

The Impacts of Energy Consumption by Sector and Foreign Direct Investment on CO2 Emissions in Malaysia

The global push for sustainable development has brought environmental issues to the fore. As minimizing environmental deterioration implies reducing energy consumption, this has come under intense discussion among economists and policymakers. This is because it may affect productivity, and thus slow economic growth ensues. Most earlier studies focused on overall energy consumption rather than energy use by sector to see how it can affect CO2 emissions. However, little research has been conducted on the connection between energy use in particular sectors, such as agriculture and transportation, and CO2 emissions. Therefore, this study aims to investigate the impacts of energy use in Malaysia’s transportation, industrial, and agricultural sectors and foreign direct investment (FDI) on CO2 emissions between 1989 and 2019. The ARDL technique is employed, and the results demonstrate that energy consumption in the transportation sector has a greater impact on CO2 emissions than in the industrial sector. On the other hand, energy use in the agricultural sector reduces CO2 emissions. These findings may help policymakers formulate the right policies in specific sectors to benefit communities. They will be at low risk of suffering from diseases attributed to environmental degradation.

Combined nonlinear effects of urbanization and economic growth on CO2 emissions in Malaysia. An application of QARDL and KRLS

Despite adequate literature on the nonlinear nexus between economic growth-environment and urbanization-environment in Malaysia, yet study on the combined nonlinear effect is lacking. Therefore, this work investigates the existence of a combined nonlinear impact of both urbanization and economic growth utilizing the Environmental Kuznets Curve (EKC) hypothesis with the help of yearly data from 1965 to 2018. This study employs the novel Quantile Autoregressive Distributed Lag (QARDL) technique. In addition, the Kernel-based Regularized Least Squares (KRLS) machine learning method is used to test robustness. The available evidence indicates that the observed association is quantile-dependent, which may have led to erroneous conclusions in prior studies relying on traditional models that focus on averages. Overall, the results endorse the legitimacy of EKC and a U-shape linkage between urbanization and the environment in the long and short run. Furthermore, the KRLS estimates also support the findings of QARDL results. Based on the results of the study, a comprehensive policy recommendation for planners and government officials. Urban development and environmental protection issues must be appropriately addressed so that the urbanization development and changes may better adapt to new social development demands.

Dynamic impacts of energy use, agricultural land expansion, and deforestation on CO2 emissions in Malaysia

This study empirically investigates the nexus among energy use, agricultural land expansion, deforestation, and carbon dioxide (CO2) emissions in Malaysia. Time series data from 1990 to 2019 were utilized using the bounds testing (ARDL) approach followed by the Dynamic Ordinary Least Squares (DOLS) method. The DOLS estimate findings show that the energy usage coefficient is positive and significant with CO2 emissions, indicating a 1% increase in energy consumption is related to a 0.91% rise in CO2 emissions. In addition, the coefficient of agricultural land is positive, which indicates that agricultural land expansion by 1% is associated with an increase in CO2 emissions by 0.84% in the long run. Furthermore, the forested area coefficient is negative, which means that decreasing 1% of the wooded area (i.e., deforestation) has a long-term effect of 5.41% increased CO2 emissions. Moreover, the pairwise Granger causality test results show bidirectional causality between deforestation and energy use; and unidirectional causality from energy use to CO2 emissions, agricultural land expansion to CO2 emissions, deforestation to CO2 emissions, agricultural land expansion to energy use, and deforestation to agricultural land expansion in Malaysia. The empirical findings reveal that increased energy use, agricultural land expansion, and deforestation have a negative impact on environmental quality in Malaysia. Thus, the effective implementation of policy measures to promote renewable energy, climate-smart agriculture, and sustainable management of forest ecosystems could be useful for reducing environmental degradation in Malaysia.

The Impacts of Energy Use, Tourism and Foreign Workers on CO2 Emissions in Malaysia

Previous studies have investigated various determinants of CO2 emissions, such as energy use, economic expansion and population growth. However, foreign workers have not been treated as a potential determinant. Therefore, this research embarks on an investigation into the impacts of energy use, foreign workers and tourist arrivals on CO2 emissions in Malaysia from 1982 to 2018. An ARDL approach was employed, and the findings showed that natural gas and electricity use insignificantly influence CO2 emissions. Tourist arrivals, coal use and oil use were found to positively influence CO2 emissions, while foreign workers and population growth insignificantly influence CO2 emissions. It was found that in the early stages of development, higher GDP negatively influences CO2 emissions, but in the final stages, higher GDP positively influences CO2 emissions. These findings are important for formulating policies to reduce environmental degradation stemming from higher CO2 emissions. Malaysia should use more renewable energy sources, and a carbon tax could be imposed to reduce environmental degradation.

CO2 Emissions and The Transport Sector in Malaysia

Transport is an essential infrastructure for development. With its high share of gross domestic product (GDP), it makes a significant contribution to total CO2 emissions in Malaysia. It is therefore important to pay greater attention to reducing CO2 emissions and sustainable development in this sector. Therefore, this study aims at estimating the relationship between transport CO2 emissions and its key drivers using the Autoregressive Distributed Lag (ARDL) technique. The time period covered by the study extends from 1978 to 2018. It further investigates the response of CO2 emissions to shocks in the value of other variables by employing the generalized impulse response approach. The results suggest that urbanization is the major contributor to the increase in CO2 emissions followed by the carbon intensity of energy in the long-run. Carbon intensity of energy, GDP per transport worker and urbanization contribute significantly to increases in transport CO2 emissions in the short- and long-run. Testing the Environmental Kuznets Curve (EKC) hypothesis recommends that Malaysia continue to be on track to reach the highest level of income and welfare to give pay more attention to the environment. Therefore, the country maintains its CO2 emissions level in the future because of economic development. Therefore, these findings show that energy and environmental policymakers need to pay more attention to improving energy efficiency and the use of low-carbon technologies and electrification in the transport sector and the use of high-quality public transport, particularly in urban areas, for sustainable urban development.

Impact of hydropower consumption, foreign direct investment and manufacturing performance on CO2 emissions in the ASEAN-4 countries

PurposeThe continuous increase in the discharges of carbon emissions (CO2) in the global atmosphere and the likely negative consequences of this practice on the atmosphere draw the attention of researchers and policymakers to argue on the causes and perpetrators of CO2 emissions. This paper aims to examine the impacts of hydropower consumption, FDI and manufacturing performance on CO2 emissions in the Association of southeast Asian nations (ASEAN)-4 countries.Design/methodology/approachThe study uses the data on variables, such as hydro-power consumption, FDI, manufacturing value added and CO2 emissions spanning the period 1980–2015. Autoregressive Distributive Lag Bound test approach was used to assess the relationships among the variables.FindingsThe long run estimation of elasticities for all the countries indicates that the coefficient of hydro power consumption was found to be significantly related to CO2 emissions only in Malaysia. Additionally, the coefficients manufacturing performance were found to be significant in influence the amount of CO2 emission in all the ASEAN-4 countries. Furthermore, the coefficients of FDI inflows were found to be significant in explaining CO2 emissions in Malaysia and the Philippines, respectively. In the short run, the estimated results show that all the variables were found to be significant in explaining CO2 emissions in the countries under study.Research limitations/implicationsSingapore is excluded from the ASEAN-4 due to insufficient data on hydro energy consumption.Practical implicationsThe study recommends that as Hydro power energy is a clean source of renewable electricity. Its consumption indicates a negative relationship with CO2 emissions. The countries should emphasize more on the use of hydro source of energy than the other sources which increase the rate of CO2 emissions in the atmosphere.Originality/valueAs most of the relevant previous studies did not consider the simultaneous impact of hydro energy consumption, FDI and manufacturing value added on CO2 emissions in the ASEAN-4, this study is an important contribution to the existing relevant literature.

Environmental Degradation-Education Nexus in Malaysia

This study aims to examine the role of education on CO2 emissions in Malaysia from 1974 to 2014. The unit root tests indicated that the variables were integrated in the same order. As such, the Johansen Co-integration Approach can be employed in this empirical analysis to analyze the impacts of the selected variables. The long-run estimation revealed that economic growth (GDP) and energy consumption (ENERGY) has a negative effect on CO2 emissions. Meanwhile, secondary school education (EDU) demonstrated a significant positive relationship with environmental degradation in the long-run. This can be inferred that secondary school education has a negative effect on environmental quality. However, a negative relationship was found between CO2 emissions and economic growth in the long-run. Besides that, this study had highlighted a positive association between gross fixed capital (GFC) and CO2 emissions. The findings from this study shed light on the vital importance of education in affecting environmental degradation. Empirical evidence suggested that the current education system will need to be redesigned for the reduction of CO2 emissions in the future. This is supported by the result that indicated the secondary level education promotes higher consumption of technologies that emit pollutants rather than promoting environmental awareness.

DYNAMIC EFFECTS OF MALAYSIA'S GOVERNMENT SPENDING ON ENVIRONMENT QUALITY: BRIDGING STIRPAT AND EKC HYPOTHESIS

This paper investigates how government spending (GSE) affects the environmental quality proxy by CO2 emissions in Malaysia over the 1978–2020 period. For that purpose, the STIRPAT model in the EKC framework are applied. The F-bounds test is applied to assess the cointegration relationship's existence. The ARDL model is used to measure the short-run and long-run environmental elasticities, and the VECM Granger causality is used to estimate the direction of the causality relationship. Empirical results show a cointegration relationship among environmental quality, GDP, population, and Malaysia's GSE. The findings provide strong support for Malaysia's EKC presence, and the GSE significantly contributes to reducing environmental sustainability. The results show the short-run unidirectional Granger causality running from CO2 emissions, GDP, and population to GSE at the 1 percent significance levels. Also, this study reveals the long-run unidirectional Granger causality running from CO2 emissions and population to GSE and GDP at least at 10 percent significance level; and the bidirectional causality between GSE and GDP at least at 10 percent significance level as well. The result implies that the increasing demand for regulatory and protective functions represented by GSE are needed to sustain the increasing level of economic wealth, environment, and communities.Keywords: Environmental Sustainability, EKC, Government Spending, Dynamic Relationship, Causality, MalaysiaJEL Classifications: O1, O2, Q5DOI: https://doi.org/10.32479/ijeep.11273

Impact of nonintrusive load monitoring on CO<sub>2</sub> emissions in Malaysia

Nonintrusive load monitoring (NILM) based energy efficiency can conserve electricity by creating awareness with the behaviour change and shrinking CO2 emissions to the environment. However, the lack of effective models and strategies is problematic for policymakers to forecast quantitatively CO2 emissions. This paper aims to study the impact of NILM on CO2 emissions in Malaysia. Firstly, the predictive models were established based on Malaysia open data from 1996 to 2018. After that, scenario simulations were conducted to predict CO2 emissions and NILM impact on environmental degradation in 2019-2030. The results revealed that a 12% reduction in electricity consumption due to NILM could contribute to a 10.2% shrinkage of the total CO2 emissions. The result also statistically confirmed Malaysia to achieve a 45% reduction of CO2 intensity in 2030. With NILM, the carbon reduction can be further enhanced to 60.2%. The outcomes provide valuable references and supporting evidence for policymakers in planning effective carbon emission control policies and energy efficiency measures. The work can be extended by developing a decision support system and user interfaces access via the cloud.

Willingness to carbon offset: value of malaysian air travellers’ experience, general and specific environmental knowledge

Greenhouse gas emissions from the aviation sector contribute significantly to global warming. Air transportation contributed 4% to 9% of total CO2 emissions in Malaysia. Several approach have been done by aviation industries in Malaysia to reduce carbon emissions from airlines, but still unsuccessful to implement carbon offset program. This study investigated experience, understanding of carbon offsets and the information passengers have concerning environmental issues and the ability to evaluate and understand impact on society and the environment among Malaysian airlines passengers. A descriptive statistics is reported as data collected from 407 Malaysian airlines passengers. The result shows only 1.5% of passengers experienced bought carbon offset schemes in past flight, more than 83% are knowledgeable with environment knowledge and more than 75.7% enlightened with understanding of carbon offsets. The finding obtained will help in providing insightful understanding about Malaysian airlines passengers’ acceptance on carbon offsets and willingness to contribute with carbon offsetting.

Modeling CO2 emissions in Malaysia: an application of Maki cointegration and wavelet coherence tests.

One of humanity's most significant problems in the twenty-first century revolves around how to balance the mitigation of environmental pollution while achieving sustainable economic development. Despite increased awareness and dedication to climate change, the planet is still seeing a drastic decrease in the volume of pollutant emissions. This study explores the long-run and causal impact of economic growth, financial development, urbanization, and gross capital formation on Malaysia's CO2 emissions based on the STIRPAT framework. The current paper employs recently developed econometric techniques such as Maki co-integration, auto-regressive distribution lag (ARDL), fully modified OLS (FMOLS), dynamic ordinary least square (DOLS), and wavelet coherence and gradual shift causality tests to investigate these interconnections. The advantage of the gradual shift causality test is that it can capture the causality in the presence of a structural break(s). The findings from the Maki co-integration and ARDL bounds tests reveal evidence of cointegration among the variables. The ARDL test reveals that economic growth, gross capital formation, and urbanization exert a positive impact on CO2 emissions. Furthermore, the wavelet coherence test reveals that there is a significant dependency between CO2 emissions and economic growth, gross capital formation, and urbanization. The Toda Yamamoto and Gradual shift causality tests reveal that there is a (a) unidirectional causality from urbanization to CO2 emissions, (b) unidirectional causality from economic growth to CO2 emissions, and (c) unidirectional causality from gross capital formation to CO2 emissions.

The effects of total factor of productivity, natural resources and green taxation on CO2 emissions in Malaysia.

This study attempts to investigate the environment cleanness between the total factor productivity, natural resources and green taxation on Malaysia's clean environment. Using the environmental Kuznets curve (EKC) hypothesis, this study employs the bootstrap quantile estimates based on the annual data series covering the period of 1970-2018 to analyse the quantile effect factors affecting environment cleanness in Malaysia. The empirical estimates of this study reject the EKC hypothesis throughout the quantile levels, while the green taxation shows a negative sign which indicated government fiscal policies are reducing carbon emission in the upper quantiles. There is also homogeneity slope equality effect between total factor of productivity and green taxation on carbon emissions in the middle and upper quantile levels, while natural resources are indication heterogeneity effect on all quantile levels. From the policy point of view, if Malaysia wants to get environment cleanness, there is a need for comprehensive policies of total factor of productivity with environment innovation-friendly and technological improvement in all major economic sectors of the country.

Macroeconomic Factors affecting CO2 Emissions in Malaysia: ARDL Approach

Environmental degradation has always been discussed by previous studies. This is because environmental degradation can have impacts on human health. The global temperature is expected to continue to increase in the next 100 years. Therefore, it is important to investigate the determinants of CO2 emissions in the long run and short run in Malaysia. Data ranging from 1985 to 2014 were collected and the ARDL approach was employed. The results show that economic growth can be detrimental to the environment in both of the long run and short run. The results also show that population can have deleterious effects on the environment in the long run only. Therefore, enhancing economic growth and increasing the number of population should be controlled to ensure that the environment can be preserved.