EKC analysis for studying economic growth and environmental quality: a case in Sabah / Saperuddin Mohd Noor

Environmental Kuznets Curve (EKC) has suggested that the relationship between economic growth and the environment could be positive and hence growth is a prerequisite for environmental improvement. Environmental Kuznets Curve (EKC) hypothesis is the best ways to describe the relationship between economic growth and environmental sustainability. This study test the Environmental Kuznets Curve (EKC) hypothesis using panel data methodology to estimate the relationships between real income per capita and pollution indicators in Sabah, Malaysia over the period of 2003-2010. There are four indices uses in this study. The result of finding shows that included; a) GDP at the constant price and air pollution index (API) have positive relationship with GDP per capita; b)water pollution index (WPI) have negative relationship with GDP per capita; c) F-statistic show there are significant relationship between independent variables and dependent variables. This study also achieves the objective of the study. These studies also use Breush-Godfrey LM Test and White test to test the data.