Impact of Energy Consumption, and Economic Dynamics on Environmental Degradation in ASEAN

Abstract

The study aims to investigate the impact of energy consumption, population size, economic growth, urbanization, industrialization and poverty on environmental degradation in Malaysia by using the data for the period of 1995-2017. Data was gathered from different sources such as Global Economy, World Bank and Index Mundi. Augmented Dickey-Fuller (ADF) test is used to check the stationarity of the data. While Auto Regressive Distributive Lag model (ARDL) to analyze the results. The study finds a positive impact of energy consumption on environmental degradation in short as well as in long run. Population, industrialization and poverty positively contribute in environment degradation while urbanization negatively contributes in environmental degradation in long run. Economic growth positively contributes in environmental degradation in short run only. The study suggests government to produce energy by using renewable sources that have less contributions in environmental degradation. This study provides guideline to the policy making authorities that they should enhance their emphasis towards energy consumption and environmental degradation. Keywords: Energy Consumption, Economic growth, Urbanization, Industrialization, Environment DegradationJEL Classifications: A12, K32, O44DOI: https://doi.org/10.32479/ijeep.10366