Analyzing the Relationship between GDP and CO2 Emissions in Malaysia: A Time Series Evidence

Abstract

The objective of the present study is to examine the relationship between Malaysia's per capita GDP, CO2 emissions, and energy consumption from 1970 to 2008.  To calculate the cost of emission reduction in terms of production loss, we have utilized CO2 emission as the controllable variable. According to the analysis, the cutoff emissions target may be reached by adopting the fewest feasible suitable emission reduction measures. Additionally, it can secure a carbon-intensive approach and help Malaysia achieve its objective of lowering its CO2 emissions.