Economic development, pollutant emissions and energy consumption in Malaysia

The objective of this paper is to examine the long-run relationship between output, pollutant emissions, and energy consumption in Malaysia during the period 1971-1999. To supplement the findings of cointegrating analysis, we assess the causal relationships between the variables using the recent causality tests available in the literature. The results indicate that pollution and energy use are positively related to output in the long-run. We found a strong support for causality running from economic growth to energy consumption growth, both in the short-run and long-run.