Macroeconomic Factors affecting CO2Emissions in Malaysia: ARDL Approach

Abstract

Environmental degradation has always been discussed by previous studies. This is because environmental degradation can have impacts on human health. The global temperature is expected to continue to increase in the next 100 years. Therefore, it is important to investigate the determinants of CO2 emissions in the long run and short run in Malaysia. Data ranging from 1985 to 2014 were collected and the ARDL approach was employed. The results show that economic growth can be detrimental to the environment in both of the long run and short run. The results also show that population can have deleterious effects on the environment in the long run only. Therefore, enhancing economic growth and increasing the number of population should be controlled to ensure that the environment can be preserved.