Economic growth in Malaysia leads to decrease in CO2 emissions
The study looked at the relationship between economic growth and CO2 emissions in Malaysia from 1980 to 2009. They used a method called Auto Regressive Distributed Lag to test the Environmental Kuznets Curve hypothesis. The results showed that there is a long-term connection between CO2 emissions and GDP, with a U-shaped relationship indicating that as GDP increases, CO2 emissions initially rise but then start to decrease. In the short-term, there was no direct link between economic growth and CO2 emissions, but in the long-term, economic growth was found to cause an increase in CO2 emissions.