Dynamic impact of household consumption on its CO<inf>2</inf> emissions in Malaysia

Kazi Sohag, Rawshan Ara Begum, Sharifah Mastura Syed Abdullah

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

This article aims to measure the dynamic impact of household consumption (final household consumption expenditure, LHC) on CO<inf>2</inf> emission from household’s energy consumption in Malaysia from 1971 to 2010. The estimation of autoregressive distributed lag (ARDL) bounds test confirms a non-monotonic relationship between LHC and residential CO<inf>2</inf> emission. In the long run, there is a positive relationship between LHC and CO<inf>2</inf> emission as well as a negative relationship between quadratic forms of LHC and CO<inf>2</inf> emission which indicates the existence of an inverted U-shaped relationship between these two variables. The analysis also found a similar relationship in both the short and long run. To confirm the non-monotonous relationship, the U test of Sasabuchi–Lind–Mehlum (2010) approach has followed to obtain the sufficient conditions for the existence of inverted U relationship. Moreover, the U test of Sasabuchi–Lind–Mehlum (2010) found that CO<inf>2</inf> emission increases with increasing LHC up to 6.5 units, but it declines with an additional increase of LHC which is also found by the ARDL model. However, the existence of environmental Kuznets curve implies that in the long run, household CO<inf>2</inf> emission declines with the additional increase of household consumption in the Malaysian economy.

Original languageEnglish
Pages (from-to)1031-1043
Number of pages13
JournalEnvironment, Development and Sustainability
Volume17
Issue number5
DOIs
Publication statusPublished - 10 Oct 2014

Fingerprint

Malaysia
household energy
Kuznets curve
energy consumption
expenditure
consumption
household
Household consumption
CO2 emissions
expenditures
economy
test

Keywords

  • ARDL bounds test
  • CO<inf>2</inf> emission
  • Household final consumption
  • Malaysia
  • U test

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Management, Monitoring, Policy and Law
  • Economics and Econometrics

Cite this

Dynamic impact of household consumption on its CO<inf>2</inf> emissions in Malaysia. / Sohag, Kazi; Begum, Rawshan Ara; Syed Abdullah, Sharifah Mastura.

In: Environment, Development and Sustainability, Vol. 17, No. 5, 10.10.2014, p. 1031-1043.

Research output: Contribution to journalArticle

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