Economic development and CO2 emission: case in Malaysia [1986-2016] / Noorfarah Dyana Noorazlan Ong

A substantial body of literature identifies a strong linkage between the economic development and CO2 emission. Thus, the objective of this study are to find the relationship between economic development and CO2 emission and to investigate the impact of economic development to CO2 emission in Malaysia for the period of 1986 to 2016. The independent variables used include economic growth, population, urbanization and industrialization. Dynamic Ordinary Least Square (DOLS) method was used to analyse the data collected from World Bank Data and Our World in Data in order to understand the impact of economic development on CO2 emission in Malaysia. The result revealed that two out of the four independent variables shows a positively significant relationship with CO2 emission which are economic growth and urbanization. Meanwhile population and industrialization shows a negatively significant relationship with CO2 emission. The research findings will assists the Malaysia’s policy makers with some information to help them to make better policies.