International journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN:2313-626X

Frequency: 12
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 Volume 4, Issue 12 (December 2017, Part 2), Pages: 199-205

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 Original Research Paper

 Title: CO2-GDP NEXUS: Case for ASEAN 5

 Author(s): Nur Surayya Saudi 1, Qaiser Munir 1, Muaz Mahmud 2, Ahmad Shakir Saudi 3, *

 Affiliation(s):

 1Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, 88400 Kota Kinabalu, Sabah, Malaysia
 2The Management School, Lancaster University, Bailrigg, Lancaster, LA1 4YX, United Kingdom
 3Institute of Medical and Science Technology (Mes-Tech), Universiti Kuala Lumpur, 43000 Kajang, Selangor, Malaysia

 https://doi.org/10.21833/ijaas.2017.012.035

 Full Text - PDF          XML

 Abstract:

This paper examines the causal relationship between carbon dioxide emission (CO2) and Gross Domestics Product (GDP). The nature of causality between CO2 per kilo tan (CO2) and GDP per capita were utilized using a cross country panel data from 1980 to 2010. The test was carried out using panel unit root tests, panel co-integration test, and panel vector error correction estimation and panel Granger causality tests to access the relationship between the respective variables. Our empirical results show the existence of long-run relationship and also suggested that GDP causes CO2 emissions in ASEAN-5. Granger-Causality test result found a one way direction (unidirectional) and no reverse causality. The results also provided indications that a change in CO2 would give favorable impact to the country economic growth. This research would be useful for policy-making by implementing the sustainable energy approach to control the emission and to reduce a green-house effect. 

 © 2017 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: CO2, GDP, Nexus, ASEAN-5, Panel data, Granger causality

 Article History: Received 14 December 2016, Received in revised form 27 September 2017, Accepted 6 October 2017

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2017.012.035

 Citation:

 Saudi NS, Munir Q, Mahmud M, and Saudi AS (2017). CO2-GDP NEXUS: Case for ASEAN 5. International Journal of Advanced and Applied Sciences, 4(12): 199-205

 Permanent Link:

 http://www.science-gate.com/IJAAS/V4I12(2)/Nur.html

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