Urbanization is a phenomenon of economic and social modernization. Investigating the link between urbanization growth and CO 2 emissions is necessary and helpful for Malaysia to achieve its pollution reduction targets. Ecological modernization and augmented Cobb-Douglas production theories are used in order to gain the best understanding of interaction between CO 2 emissions and urbanization for the 1971-2015 period. This study aims to examine the relationships among CO 2 emissions, urbanization growth, energy consumption, GDP, domestic investment, and financial development. The F-bounds test and VECM Granger causality are utilized. The dynamic relationship among variables and the inverted U-shaped relationship between CO 2 emissions and urbanization in the long run are examined. The elasticity of CO 2urbanization is found positive elastic in the early stage of urbanization, but it turns to negative inelastic at the higher urbanization stage. Furthermore, the unidirectional causality from urbanization to CO 2 emissions in the short run are at a 1 percent level of significance, and the bidirectional causality between CO 2 emissions and urbanization is at a 5 percent level of significance in the long run. Also, we captured bidirectional causality among energy consumption, domestic investment, GDP, CO 2 emissions, and unidirectional causality from financial development to CO 2 emissions at least at a 5 percent level of significance. These findings could support policymakers in managing urbanization development and considering clean investment and other green aspects for urban sustainable development, which can save many people from natural disaster.

No abstract

This paper examines the co-integration and long run elasticity between electricity consumption (EC) and economic activities (FDI, export and industrial value added) for the 1971-2011 period. The F-Bound test was employed to estimate the long run relationship among the variables and logarithmic multiple regression model to determine the magnitude of changes in electricity consumption when there is a changes in economic activities. It shows a significant long run relationship among electricity consumption, FDI, export and industrial value added. This means that all the aforesaid variables achieve equilibrium in the long run and there is a possibility of causal relationship among variables at least in one direction. Also, it shows an evidence to the future researcher and academician particularly to developed general understanding and guidance for policy formulation.

The aim of this paper is to examine the interconnection bewteen the environmental Kuznet curve (EKC) and urban environment transition hypotheses in the Malaysian economy. Economic growth, CO 2 emissions, energy consumption, financial development (FD), urbanization variables for the 1971-2013 period, F-bound tests, and multivariate Granger causality methods are used. The long-run relationships among the above series of variables are examined. Also, the findings confirm the existence of an inveretd EKC hypothesis in the Malaysian economy. Furthermore, the study implies that long-run urban sprawl can create environmental and health burdens in Malaysia. Moreover, the causality analysis finds bidirectional causality between CO 2 emissions and energy consumption, between economic growth and urbanization, and from economic growth to FD. The overall results suggest that a rapid urbanization process can help to reduce the level of pollution and energy consumption by employing technical innovation and ecological modernization. In addition, the increased energy efficiency, implementation of energy savings projects, energy conservation, and energy infrastructure outsourcing reduce the level of pollution produced by urban areas. Also, alternative biofuels can reduce the emission intensity and fulfill future energy needs.

This paper investigates and estimates the price and income elasticity of electricity consumption and then compares the level of sensitivity of demand for electricity in the rural and urban areas in Malaysia. The non linear model was employed to estimate the elasticity of electricity consumption. The electricity demand has been estimated as a function of tariff, real GDP, gas price and population in the rural and urban population. The gas price has been used as a proxy to measure the level of sensitivity goods by using the annual data covering the 1980-2009 period. The results showed that the income elasticity ( was less than unity which indicated electricity as a necessity good to the people in Malaysia. The reaction of electricity consumption was found to be greater in the urban area compared to the rural area. The higher sensitivity of electricity consumption in the urban population was due to higher exposure to electricity appliances and facilities.