Analysing the CO2 Emissions Function in Malaysia: Autoregressive Distributed Lag Approach

The main purpose of the current article is to re-analyse the CO2 emissions function (i.e., gross domestic product and energy consumption) in Malaysia using annual time-series data over the [1971−2012] period. The paper employs the autoregressive distributed lag approach to identify the co-integrating relationships and estimate the equilibrium relationships. The validity of the environmental Kuznets curve hypothesis in the Malaysian economy has been tested to explore the relationship between gross domestic product per capita and CO2 emissions per capita. The empirical results indicate the existence of co-integrating relationships among variables in the CO2 emissions model.