Green technology, exports, and CO2 emissions in Malaysia

Temitayo Blessing Majekodunmi · Mohd Shahidan Shaari · Noorazeela Zainol Abidin · Abdul Rahim Ridzuan

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Energy, Environment, Economic Growth Climate Change Policy and Economics Environmental Impact and Sustainability

Abstract

The pressing global effort to tackle CO 2 emissions has brought about a strong emphasis on adopting green technology by economies striving for low-carbon development. Within this context, this research investigates the environmental significance of green technology and exports in Malaysia. By examining 30-year data from 1989 to 2019 and utilising the autoregressive distributed lag model (ARDL), this study explores these variables' long-run and short-run effects on Malaysia's environment. The outcomes reveal noteworthy insights: population growth and green technology negatively impact environmental degradation, whereas exports and economic expansion contribute to environmental depletion over the long term. However, the influences of a higher population and exports are inconsequential in the short term. Additionally, the study captures the influences of transient economic challenges, such as the COVID-19 outbreak. Consequently, the study emphasises crucial policy implications for the Malaysian government. Firstly, it strongly recommends increasing investment in sustainable technology, especially within the manufacturing sector, to mitigate the adverse environmental impact of exports. Furthermore, it suggests incentivizing companies to embrace green technology through subsidies for acquiring renewable energy and imposing higher taxes on non-renewable energy sources. Additionally, policymakers are urged to prioritise human capital development by raising public awareness about the dangers of heightened CO 2 emissions. Malaysia can leverage its expertise to foster economic expansion without compromising the environment by engaging the working population in environmentally sustainable economic activities. These policy recommendations aim to expedite the shift towards a decarbonised economy, promote sustainable development, and safeguard Malaysia's natural resources.

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References

2014CO2 emissions, energy consumption, economic and population growth in Malaysia 2016Relationships among carbon emissions, economic growth, energy consumption and population growth: Testing Environmental Kuznets Curve hypothesis for Brazil, China, India and Indonesia 2020Consumption-based carbon emissions and International trade in G7 countries: The role of Environmental innovation and Renewable energy 2019Do globalization and renewable energy contribute to carbon emissions mitigation in Sub-Saharan Africa?2020Public-private partnerships investment in energy as new determinant of CO2 emissions: The role of technological innovations in China 2020Reducing CO2 emissions in OECD countries: Do renewable and nuclear energy matter?2022The impact of green technological innovation and institutional quality on CO2 emissions in African countries 2020Effect of urbanization and international trade on CO2 emissions across 65 belt and road initiative countries

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