The Impact of Gross Domestic Product, Trade Openness, Air Transportation, and Total Final Energy on Carbon Dioxide Emission in Malaysia

The current paper provides an empirical analysis of the relationship between carbon dioxide(CO2) emissions and economic factors, namely Gross Domestic Product (GDP), airtransportation, energy consumption, and trade openness in Malaysia, based on the annual datafrom 1990 until 2016. By utilising the cointegration analysis, it is demonstrated that CO2emissions exhibit a positive and significant long-run relationship with air transportation andenergy consumption. Meanwhile, GDP and trade openness are significant in influencing CO2emissions in the short run. It was also demonstrated that the disturbances fluctuate whileentering the long-run relationship in a dampening manner rather than monotonically. It isadvised for policymakers to continually consider the movements of these economicdeterminants due to their significant effect on CO2 emissions in Malaysia in both the short andlong run.