Determinants of environmental quality in Malaysia / Mohamad Aimran Mohd Nordin

Investigating the link between macroeconomic variables and CO2 emissions is necessary and helpful for Malaysia to achieve its pollution reduction targets. Environmental Kuznets Curve (EKC) and Kuznets Curve (KC) Economists are used in order to gain the best understanding of the interaction between CO2 emissions and economic growth during the 1971-2014 period. This study aims to examine the relationship among CO2 emissions, trade openness, economic growth, financial development, power consumption and urban population. Some tests were run using the ARDL method to determine which variables are significant towards CO2 emissions in the long run. Economic Growth and Trade Openness both are found significantly positive toward CO2 emissions with both significant at 1% level. While Financial Development was found to have a negative relation toward CO2 emissions and its significant level is at 10%. These findings could support policymakers in managing urbanization development and considering clean investment and other green aspects for reducing CO2 emissions, which can save people from the natural disaster.