Environmental Kuznets Curve and the Relationship between Energy Consumption, Economic Growth and CO2 Emissions in Malaysia

Abstract

The paper examines the impact of energy consumption and economic growth on CO₂ emissions in Malaysia, covering 1965-2015 period. Simple ordinary least squares technique was employed to achieve the objective. The result indicated that CO₂ emission decreases with an increase in income and increases with an increase in trade openness. While environmental Kuznets curve is nonexistent. We therefore recommended that CO₂ mitigation policies should be prioritized.

Keywords: CO₂ emissions, energy consumption, economic growth, OLS