Title: Energy consumption, CO₂ emission and economic growth: empirical evidence for Malaysia

Authors: Md. Sujahangir Kabir Sarkar; Abul Quasem Al-Amin; Siti Indati Mustapa; Md. Rajibul Ahsan

Addresses: Institute of Energy Policy and Research (IEPRe), Universiti Tenega Nasional, Kajang, Malaysia; Department of Economics and Sociology, Patuakhali Science and Technology University, Dumki 8602, Patuakhali, Bangladesh ' Institute of Energy Policy and Research (IEPRe), Universiti Tenega Nasional, Kajang, Malaysia; Department of Geography and Environmental Management, University of Waterloo, Canada ' Institute of Energy Policy and Research (IEPRe), Universiti Tenega Nasional, Kajang, Malaysia ' Commercial Wing, Bangladesh High Commission, Kuala Lumpur, Malaysia

Abstract: This study focuses on the relationship among the energy consumption, carbon emission and economic growth of Malaysia by using a time series data from 1980-2016. The study findings are shown by an econometric analysis that energy consumption, total and per capita CO₂ emission and gross domestic product (GDP) has increased vastly between 1980 and 2016. The Johansen cointegration test confirms the existence of the long run relationship of energy consumption with carbon emission and economic growth. Moreover, the Granger causality test reveals the unidirectional causality of energy demand and population with carbon emission. The positive and significant relationship between GDP and carbon emission is a critical issue in Malaysia that needs to be addressed with care as economic growth is necessary but increase of carbon emission is undesirable. Therefore, this study recommends to promote green energy, green growth (GDP) that will ensure both energy security and energy sustainability in Malaysia over time.

Keywords: energy consumption; carbon emission; economic growth; green energy; policy; Malaysia.

DOI: 10.1504/IJESD.2019.101036

International Journal of Environment and Sustainable Development, 2019 Vol.18 No.3, pp.318 - 334

Received: 01 Nov 2018
Accepted: 01 Mar 2019
Published online: 22 Jul 2019 *

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