The Impacts of Energy Use, Tourism and Foreign Workers on CO2 Emissions in Malaysia

Abstract

Previous studies have investigated various determinants of CO2 emissions, such as energy use, economic expansion and population growth. However, foreign workers have not been treated as a potential determinant. Therefore, this research embarks on an investigation into the impacts of energy use, foreign workers and tourist arrivals on CO2 emissions in Malaysia from 1982 to 2018. An ARDL approach was employed, and the findings showed that natural gas and electricity use insignificantly influence CO2 emissions. Tourist arrivals, coal use and oil use were found to positively influence CO2 emissions, while foreign workers and population growth insignificantly influence CO2 emissions. It was found that in the early stages of development, higher GDP negatively influences CO2 emissions, but in the final stages, higher GDP positively influences CO2 emissions. These findings are important for formulating policies to reduce environmental degradation stemming from higher CO2 emissions. Malaysia should use more renewable energy sources, and a carbon tax could be imposed to reduce environmental degradation.