Economic Growth and Environment: The Case of Malaysia and Thailand

It is widely known that greenhouse gases contribute to a warmer climate. Therefore, it is essential to examine the effects of economic development on environment. In this study, a multivariate time series analysis of the factors that influencing CO2 emissions in Malaysia and Thailand is conducted. It is expected that the determinants of CO2emissions, including economic growth, FDI, energy consumption, urbanization and trade openness will remain crucial in developing countries and understanding how these economic factors affects CO2 emissions is essential to provideinsight for policy implementation. The empirical results signify the existence of a long run relationship between all the independent variables with CO2emissions in both countries, except for urbanization which only significant in the case of Thailand. On the other hand, urbanization is the only significant variable for CO2 emission in the model of Malaysia in the short run. Besides, the result revealed that both countries are still in the early stage of the EKC curve in which their economic growth increase as well as the CO2 emission. With this in mind, both countries are still in the process of reaching the maximum turning point stated in the theory of EKC

کلیدواژه ها:

Carbon dioxide ، economic growth ، Malaysia ، Thailand