A transport environmental Kuznets curve analysis for Malaysia: exploring the role of corruption
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RESEARCH ARTICLE
A transport environmental Kuznets curve analysis for Malaysia: exploring the role of corruption You-How Go 1
&
Lin-Sea Lau 1
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Feng-Mei Liew 1
&
Abdelhak Senadjki 1
Received: 19 March 2020 / Accepted: 3 September 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Validity of the environmental Kuznets curve (EKC) hypothesis is consistently and widely debated among economists and environmentalists alike throughout time. In Malaysia, transport is one of the “dirtiest” sectors; it intensively consumes energy in powering engines by using fossil fuels and poses significant threats to environmental quality. Therefore, this study attempted an examination into the impact of corruption on transport carbon dioxide (CO2) emissions. By adopting the fully modified ordinary least squares, canonical cointegrating regression, and dynamic ordinary least squares in performing long-run estimations, the results obtained based on the annual data spanning from 1990 to 2017 yielded various notable findings. First, more corruption would be attributable towards increased transport CO2 emissions. Second, a monotonic increment of transport CO2 emission was seen with higher economic growth and thus invalidated the presence of EKC. Overall, this study suggests that Malaysia has yet to reach the level of economic growth synonymous with transport CO2 emission reduction due to the lack of high technology usage in the current system implemented. Therefore, this study could position policy recommendations of use to the Malaysian authorities in designing the appropriate economic and environmental policies, particularly for the transport sector. Keywords Environmental Kuznets curve hypothesis . Carbon dioxide emissions . Transport sector . Corruption . Malaysia
Introduction The transport sector plays an important role in ensuring a favourable socioeconomic development, particularly in developing countries such as Malaysia. In a globalised economy, its economic activities and opportunities are highly associated Responsible Editor: Eyup Dogan Electronic supplementary material The online version of this article (https://doi.org/10.1007/s11356-020-10736-w) contains supplementary material, which is available to authorized users. * You-How Go [email protected] Lin-Sea Lau [email protected] Feng-Mei Liew [email protected] Abdelhak Senadjki [email protected] 1
Faculty of Business and Finance, Universiti Tunku Abdul Rahman (UTAR), Kampar, Perak, Malaysia
with the mobility of people and goods. In other words, a well-developed transport system is closely linked to a high level of economic development, which can be reflected in the increasing level of output, employment opportunities, and income. However, the economic opportunities and benefits from the transport sector are often derived at the expense of environmental quality due to combustion of petroleumbased products, including gasoline. Among all the economic sectors, transport is one of the fastest-growing contributors to global CO2 emissions. Currentl
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