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The Influences of Economic Indicators on Environmental Pollution in Malaysia

Author

Listed:
  • Foo Shi He

    (Multimedia University, Melaka, Malaysia.)

  • Gerald Goh Guan Gan

    (Multimedia University, Melaka, Malaysia.)

  • Usama Al-mulali

    (Multimedia University, Melaka, Malaysia.)

  • Sakiru Adebola Solarin

    (Multimedia University, Melaka, Malaysia.)

Abstract

This study aims to investigate the relationship between environmental degradation (ecological footprint) and economic indicators such as gross domestic product (GDP), financial liberalisation, energy consumption, urbanisation, and trade openness in Malaysia. The use of financial liberalisation is driven by the factor that majority of the previous studies focused on financial development that has a narrow definition. Autoregressive distributed lag model and Granger causality test has been used to identify the relationship between the variables from 1978 to 2013. The result shows that environmental Kuznets curve model does not apply in Malaysia due to the U-shape relationship between financial liberalisation and ecological footprint. Positive relationships are identified between GDP, trade openness, energy consumption and ecological footprint. The results of the study suggest that Malaysia should improve its energy efficiency and focus more on its environmental well-being while increasing its GDP.

Suggested Citation

  • Foo Shi He & Gerald Goh Guan Gan & Usama Al-mulali & Sakiru Adebola Solarin, 2019. "The Influences of Economic Indicators on Environmental Pollution in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 123-131.
    • Handle: RePEc:eco:journ2:2019-02-15
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    References listed on IDEAS

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    Cited by:

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    2. James Temitope Dada & Adams Adeiza & Noor Azizi Ismail & Arnaut Marina, 2022. "Investigating the link between economic growth, financial development, urbanization, natural resources, human capital, trade openness and ecological footprint: evidence from Nigeria," Journal of Bioeconomics, Springer, vol. 24(2), pages 153-179, July.
    3. Wu, Hong, 2022. "Trade openness, green finance and natural resources: A literature review," Resources Policy, Elsevier, vol. 78(C).
    4. Hanadi Taher, 2020. "Financial Development and Economic Growth Impact on The Environmental Degradation in Lebanon," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 311-316.
    5. Solomon Prince Nathaniel & Festus Bekun & Alimshan Faizulayev, 2021. "Modelling the Impact of Energy Consumption, Natural Resources, and Urbanization on Ecological Footprint in South Africa: Assessing the Moderating Role of Human Capital," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 130-139.
    6. Israel R. Orimoloye & Olusola O. Ololade, 2021. "Global trends assessment of environmental health degradation studies from 1990 to 2018," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 3251-3264, March.
    7. Zhang, Hongwei & Shao, Yanmin & Han, Xiping & Chang, Hsu-Ling, 2022. "A road towards ecological development in China: The nexus between green investment, natural resources, green technology innovation, and economic growth," Resources Policy, Elsevier, vol. 77(C).
    8. Muhammad Noshab Hussain & Zaiyang Li & Shaohua Yang, 2023. "Heterogeneous effects of urbanization and environment Kuznets curve hypothesis in Africa," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 317-333, May.
    9. Jamiu Adetola Odugbesan & Husam Rjoub, 2020. "Relationship Among Economic Growth, Energy Consumption, CO2 Emission, and Urbanization: Evidence From MINT Countries," SAGE Open, , vol. 10(2), pages 21582440209, April.
    10. Wajahat Ali & Inam Ur Rahman & Muhammad Zahid & Muhammad Anees Khan & Tafazal Kumail, 2020. "Do technology and structural changes favour environment in Malaysia: an ARDL-based evidence for environmental Kuznets curve," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7927-7950, December.
    11. Ali, Amjad & Sumaira, Sumaira & Siddique, Hafiz Muhammad Abubakar & Ashiq, Saima, 2023. "Impact of Economic Growth, Energy Consumption and Urbanization on Carbon Dioxide Emissions in the Kingdom of Saudi Arabia," MPRA Paper 118832, University Library of Munich, Germany.
    12. Ponle Henry Kareem & Mumtaz Ali & Turgut Tursoy & Wagdi Khalifa, 2023. "Testing the Effect of Oil Prices, Ecological Footprint, Banking Sector Development and Economic Growth on Energy Consumptions: Evidence from Bootstrap ARDL Approach," Energies, MDPI, vol. 16(8), pages 1-19, April.
    13. Yung-Jaan Lee, 2019. "Ecological Footprint and Water Footprint of Taipei," Sustainability, MDPI, vol. 11(20), pages 1-16, October.

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    More about this item

    Keywords

    Financial liberalisation; Ecological Footprint; Malaysia;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance

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