Energy, Economic Growth and Pollutant Emissions Nexus: The Case of Malaysia

The objective of this study is to investigate the causal relationships between energy consumption, economic growth and pollutant emissions for Malaysia over the period 1970-2010. By applying techniques of cointegration and vector error correction modelling, the result shows the existence of the long-run relationship between energy consumption, economic growth and emission. The results also point to a unidirectional causality running from economic growth to energy consumption, from pollutant emissions to energy consumption and from pollutant emissions to economic growth.