Abstract: The objective of this paper is to examine the long-run relationship between output, pollutant emissions, and energy consumption in Malaysia during the period 1971–1999. To supplement the findings of cointegrating analysis, we assess the causal relationships between the variables using the recent causality tests available in the literature. The results indicate that pollution and energy use are positively related to output in the long-run. We found a strong support for causality running from economic growth to energy consumption growth, both in the short-run and long-run.
Keywords: Energy consumption; Pollutant emissions; Causality; Multivariate cointegration
JEL classification codes: C32; O53; Q20; Q43
by James B. Ang RSPAS (Economics), Australian National University, Canberra, ACT 0200, Australia and Department of Economics, Monash University, 900 Dandenong Road, Caulfield East, Vic 3145, Australia; Tel.: +61 3 99034516; fax: +61 3 99031128.
Journal of Policy Modeling via Elsevier Science Direct www.ScienceDirect.com
Volume 30, Issue 2; March-April, 2008; Pages 271-278
http://dx.doi.org/10.1016/j.jpolmod.2007.04.010
http://envirovaluation.org/htsrv/trackback.php/5501
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