The Impact of Selected Macroeconomic Variables on Carbon Dioxide (Co2) Emission in Malaysia

  • Authors

    • Norimah Rambeli Ramli
    • Norasibah Abdul Jalil
    • Emilda Hashim
    • Maryam Mahdinezhad
    • Asmawi Hashim
    • Belee .
    • Syazwani Mohd Bakri
    2018-10-07
    https://doi.org/10.14419/ijet.v7i4.15.21447
  • Carbon Dioxide (Co2), Gross Domestic Product, Macroeconomic Variables, Energy Consumption, Ordinary Least Square Model.
  • This study tries to investigate the relationship between gross domestic product, electricity product, net trade, electricity consumption and oil price on carbon dioxide (Co2) emission in Malaysia. Thus, it uses the Ordinary Least Square (OLS) method in structuring the model estimation. By utilizing yearly time series data from 1980 to 2017, this study focuses on economics and statistical criteria analyses. According to sign analysis, the results suggest that, gross domestic product, electricity product, net trade and energy consumption affect carbon dioxides (Co2) positively. In contrast, the oil price affects carbon dioxides (Co2) negatively. Furthermore, the results in statistical criteria conclude that the gross domestic product, electricity product and energy consumption are the dominant factors that influence carbon dioxides combustion in the long run in Malaysia.

     

     
  • References

    1. [1] Ab-Rahim, R., & Teoh, X.D. (2016). The Determinants of CO2 Emissions in ASEAN+3 Countries. Journal of Entrepreneurship and Business, 4(1), 38–49.

      [2] https://doi.org/10.17687/JEB.0301.04

      [3] Akbostancı, E., Tunç, G. İ., & Türüt-Aşık, S. (2011). CO2 emissions of Turkish manufacturing industry: a decomposition analysis. Applied Energy, 88(6), 2273-2278.

      [4] Alkhathlan, K., Alam, M., & Javid, M. (2012). Carbon dioxide emissions, energy consumption and economic growth in Saudi Arabia: A multivariate cointegration analysis. British Journal of Economics, Management and Trade, 2(4), 327-339.

      [5] Bruck, B. P., et. al. (2016). Minimizing CO 2 emissions on a practical daily carpooling problem, 81, 40–50. https://doi.org/10.1016/j.cor.2016.12.003

      [6] Chen, J. H., & Huang, Y. F. (2013). The study of the relationship between carbon dioxide (CO2) emission and economic growth. Journal of International and Global Economic Studies, 6(2), 45-61.

      [7] Chindo, S., et. al. (2015). Energy consumption, CO2 emissions and GDP in Nigeria. GeoJournal, 80(3), 315-322.

      [8] Curtis, J., Lynch, M., & Zubiate, L. (2016). Carbon dioxide (CO2) emissions from electricity: The influence of the North Atlantic Oscillation. Applied Energy, 161, 487–496. https://doi.org/10.1016/j.apenergy.2015.09.056

      [9] Diakoulaki, D., & Mandaraka, M. (2007). Decomposition analysis for assessing the progress in decoupling industrial growth from CO2 emissions in the EU manufacturing sector. Energy Economics, 29(4), 636-664.

      [10] Farhani, S., & Ben Rejeb, J. (2012). Energy consumption, economic growth and CO2 emissions: Evidence from panel data for MENA region.

      [11] Gavenas, E., Rosendahl, K. E., & Skjerpen, T. (2015). CO2-emissions from Norwegian oil and gas extraction. Energy, 90, 1956–1966. https://doi.org/10.1016/j.energy.2015.07.025

      [12] Hammond, G. P., & Norman, J. B. (2012). Decomposition analysis of energy-related carbon emissions from UK manufacturing. Energy, 41(1), 220-227.

      [13] Haseeb, M., & Azam, M. (2015). Energy consumption, economic growth and CO2 emission nexus in Pakistan. Asian Journal of Applied Sciences, 8, 27-36.

      [14] Hussain, M., Irfan Javaid, M., & Drake, P. R. (2012). An econometric study of carbon dioxide (CO2) emissions, energy consumption, and economic growth of Pakistan. International Journal of Energy Sector Management, 6(4), 518-533.

      [15] IPPC. (2006). Intergovernmental Panel on Climate Change (IPPC). Retrieved 2018, from 2006 IPCC Guidelines for National Greenhouse Gas Inventories: https://www.ipcc-nggip.iges.or.jp/public/2006gl/

      [16] Li, P., & Jones, S. (2015). Vehicle restrictions and CO2 emissions in Beijing - A simple projection using available data. Transportation Research Part D: Transport and Environment, 41, 467–476. https://doi.org/10.1016/j.trd.2015.09.020

      [17] Mohiuddin, O., Asumadu-Sarkodie, S., & Obaidullah, M. (2016). The relationship between carbon dioxide emissions, energy consumption, and GDP: A recent evidence from Pakistan. Cogent Engineering, 3(1), 1210491.

      [18] Moutinho, V., Costa, C., & Bento, J. P. C. (2015). The impact of energy efficiency and economic productivity on CO2 emission intensity in Portuguese tourism industries. Tourism Management Perspectives, 16, 217–227. https://doi.org/10.1016/j.tmp.2015.07.009

      [19] Mu, Q. et al. (2013). A remotely sensed global terrestrial drought severity index. Bulletin of the American Meteorological Society, 94(1), 83-98.

      [20] Norimah, R.R et al. (2017). The Mechanism Design of Homogeneous Carbon Permit Auction a National Model. Advanced Science Letters, 23(7), 6153-6156.

      [21] Rahman, A. F. M. A., & Porna, A. K. (2014). Growth environment relationship: evidence from data on South Asia. J Account Finance Econ, 4(1), 86-96.

      [22] Remuzgo, L., & Sarabia, J. M. (2015). International inequality in CO2 emissions: A new factorial decomposition based on Kaya factors. Environmental Science and Policy, 54, 15–24. https://doi.org/10.1016/j.envsci.2015.05.020

      [23] Salahuddin, M., Gow, J., & Ozturk, I. (2015). Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust?. Renewable and Sustainable Energy Reviews, 51, 317-326.

      [24] Shahateet, M. I., Al-Majali, K. A., & Al-Hahabashneh, F. (2014). Causality and cointegration between economic growth and energy consumption: Econometric evidence from Jordan. International Journal of Economics and Finance, 6(10), 270.

      [25] Sheinbaum-Pardo, C., Mora-Pérez, S., & Robles-Morales, G. (2012). Decomposition of energy consumption and CO2 emissions in Mexican manufacturing industries: Trends between 1990 and 2008. Energy for Sustainable Development, 16(1), 57-67.

      [26] Soheilakhoshnevis, Y., & Bahram, S. (2014). The econometric model for co 2 emissions, energy consumption, economic growth, foreign trade, financial development, 8(3), 828–840.

      [27] Stolyarova, E. (2009). Carbon dioxide emissions, economic growth and energy mix: empirical evidence from 93 countries. Climate Economics Chair Paris-Dauphine University.

      [28] Su, S., Fang, X., Zhao, J., & Hu, J. (2016). Spatiotemporal characteristics of consumption based CO2 emissions from China’s power sector. Resources, Conservation and Recycling, 4–11. https://doi.org/10.1016/j.resconrec.2016.06.004

      [29] Tajudeen, I. A. (2015). Examining the role of energy efficiency and non-economic factors in energy demand and CO2 emissions in Nigeria: Policy implications. Energy Policy, 86, 338–350. https://doi.org/10.1016/j.enpol.2015.07.014

      [30] Tiwari, A. K. (2011). Energy consumption, CO2 emissions and economic growth: Evidence from India. Journal of International Business and Economy, 12(1), 85-122.

      [31] Wang, G. G., Hossein Gandomi, A., & Hossein Alavi, A. (2013). A chaotic particle-swarm krill herd algorithm for global numerical optimization. Kybernetes, 42(6), 962-978.

      [32] Yan, X., & Fang, Y. P. (2015). CO2 emissions and mitigation potential of the Chinese manufacturing industry. Journal of Cleaner Production, 103, 759–773. https://doi.org/10.1016/j.jclepro.2015.01.051

      [33] Zaidi, S. Gmidene, S. and Zouari-Ghorbel, S.(2016). Causal Relationships between Energy Consumption, Economic Growth and CO2 Emission in Sub-Saharan: Evidence from Dynamic Simultaneous-Equations Models. Bulletin of Energy Economics, 4(3), 235-244.

  • Downloads

  • How to Cite

    Rambeli Ramli, N., Abdul Jalil, N., Hashim, E., Mahdinezhad, M., Hashim, A., ., B., & Mohd Bakri, S. (2018). The Impact of Selected Macroeconomic Variables on Carbon Dioxide (Co2) Emission in Malaysia. International Journal of Engineering & Technology, 7(4.15), 204-208. https://doi.org/10.14419/ijet.v7i4.15.21447