THE LINKAGE BETWEEN CARBON DIOXIDE EMISSIONS, ENERGY USE AND ECONOMIC GROWTH IN MALAYSIA

Abstract

The aim of the study is to know the linkages between carbon dioxide emissions (CO2), energy use and economic growth (GDP) in Malaysia. Annual data has been used in this study. The result of Unit Root test shows that all the variables are stationary at first difference. Based on the causality relationship between three variables, the short-run causal relationship had been recognised in this study; a unidirectional causality running from energy use to carbon dioxide and from energy use to economic growth (GDP) and a bidirectional causality running between carbon dioxide and economic growth (GDP). Some policies had been recommended as for solution to Malaysian and as a springboard for researcher to further the study on economic growth, energy use and carbon dioxide.