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Modelling the Environmental Kuznets Curve of Water Pollution Impact on Economic Growth in Developing Country

Author

Listed:
  • Halimahton Borhan

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Campus, Melaka, Malaysia,)

  • Abdul Rahim Ridzuan

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Campus, Melaka, Malaysia,)

  • Geetha Subramaniam

    (Faculty of Business and Management, Universiti Teknologi MARA, Puncak Alam Campus, Selangor, Malaysia)

  • Suhaida Mohd Amin

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Campus, Melaka, Malaysia,)

  • Rosfadzimi Mat Saad

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Campus, Melaka, Malaysia,)

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.

Suggested Citation

  • Halimahton Borhan & Abdul Rahim Ridzuan & Geetha Subramaniam & Suhaida Mohd Amin & Rosfadzimi Mat Saad, 2021. "Modelling the Environmental Kuznets Curve of Water Pollution Impact on Economic Growth in Developing Country," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 545-552.
    • Handle: RePEc:eco:journ2:2021-05-62
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    References listed on IDEAS

    as
    1. Alkhathlan, Khalid & Javid, Muhammad, 2013. "Energy consumption, carbon emissions and economic growth in Saudi Arabia: An aggregate and disaggregate analysis," Energy Policy, Elsevier, vol. 62(C), pages 1525-1532.
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    More about this item

    Keywords

    Environmental Kuznets Curve; pollution; Gross Domestic Product;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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