Air pollutants in Malaysia : the contribution of economic growth towards it / Halimahton Borhan and Elsadig Musa Ahmed

Borhan, Halimahton and Ahmed, Elsadig Musa (2008) Air pollutants in Malaysia : the contribution of economic growth towards it / Halimahton Borhan and Elsadig Musa Ahmed. Social and Management Research Journal (SMRJ), 5 (1). pp. 123-140. ISSN 1675-7017


It is possible to distinguish three main channels whereby income growth affects the quality of the environment as first suggested by Grossman (1995). These are (1) scale effect, (2) composition effect and (3) techn ologi cal
pr ogr ess. A recent resear ch criticism by Cole (2003 and 2004) of the environmental Kuznets curve (EKC) hypothesis is based on the occurrence of foreign direct investment and international trade. In the previous EKC literature. EKC is always estimated in the form of a single equation. However,
since both income and environmental quality are endogenous variables in which they impact upon each other, the estimation of single equation relationships where simultaneity exists will produce biased and inconsistent
estimates. The general objective ofthis study is to measure the relationship between economic growth and different indicators ofair pollution in Malaysia. Air pollution indicators were assessed on a number of measures: Carbon
Monoxide (CO), Sulfur Dioxide (SO). Nitrogen Dioxide (NO). Ozone (0) and Particulat e Matter (PM,). The income level per capita GDP (Gross Domestic Product) were measured from the year 1996 to 2006 quarterly. This study contributes to the available literature by Hung et al (2004) AND Shen
(2006), This study also estimates population density as an endogenous variable. It formulates a four- equation simultaneous model for empirical research. It tests for exogeneity using the Hausman test and estimates the
simultaneity model using the two-stages least squares method. The EKC hypothesis is supported in the cases ofso] and PM/oand there are several differences found between single polynomial equation estimators commonly used in EKC literatures and simultaneous equation estimators.


Item Type: Article
Email / ID Num.
Borhan, Halimahton
Ahmed, Elsadig Musa
Subjects: H Social Sciences > HC Economic History and Conditions > Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
T Technology > TD Environmental technology. Sanitary engineering > Special types of environment. Including soil pollution, air pollution, noise pollution
Divisions: Universiti Teknologi MARA, Shah Alam > Research Management Centre (RMC)
Journal or Publication Title: Social and Management Research Journal (SMRJ)
UiTM Journal Collections: UiTM Journal > Social and Management Research Journal (SMRJ)
ISSN: 1675-7017
Volume: 5
Number: 1
Page Range: pp. 123-140
Keywords: Air pollutants, Economic Growth. Malaysia, Environmental Kuznets Curve
Date: 2008
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