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Causal nexus between energy consumption and carbon dioxide emission for Malaysia using maximum entropy bootstrap approach


Gul, Sehrish and Zou, Xiang and Hassan, Che Hashim and Azam, Muhammad and Zaman, Khalid (2015) Causal nexus between energy consumption and carbon dioxide emission for Malaysia using maximum entropy bootstrap approach. Environmental Science and Pollution Research, 22 (24). pp. 19773-19785. ISSN 0944-1344

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Abstract

This study investigates the relationship between energy consumption and carbon dioxide emission in the causal framework, as the direction of causality remains has a significant policy implication for developed and developing countries. The study employed maximum entropy bootstrap (Meboot) approach to examine the causal nexus between energy consumption and carbon dioxide emission using bivariate as well as multivariate framework for Malaysia, over a period of 1975–2013.This is a unified approach without requiring the use of conventional techniques based on asymptotical theory such as testing for possible unit root and cointegration.In addition, it can be applied in the presence of non-stationary of any type including structural breaks without any type of data transformation to achieve stationary.Thus, it provides more reliable and robust inferences which are insensitive to time span as well as lag length used. The empirical results show that there is a unidirectional causality running from energy consumption to carbon emission both in the bivariate model and multivariate framework, while controlling for broad money supply and population density. The results indicate that Malaysia is an energy-dependent country and hence energy is stimulus to carbon emissions.

Item Type: Article
Uncontrolled Keywords: Carbon dioxide emission; Energy consumption; Maximum entropy bootstrap approach; Malaysia
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
Divisions: School of Economics, Finance & Banking
Depositing User: Dr. Muhammad Azam
Date Deposited: 25 Sep 2016 08:01
Last Modified: 25 Sep 2016 08:01
URI: http://repo.uum.edu.my/id/eprint/18651

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