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Environmental Science and Pollution Research

, Volume 26, Issue 33, pp 34468–34478 | Cite as

Moderating role of financial development in environmental Kuznets: a case study of Malaysia

  • Abid Rashid GillEmail author
  • Sallahuddin Hassan
  • Muhammad Haseeb
Research Article
  • 76 Downloads

Abstract

This research article aims to investigate the moderating role of financial development in Environmental Kuznets Curve (EKC) in the context of Malaysia for the period 1970–2016. As the time series variables are integrated of different order therefore, Auto-Regressive Distributed Lag (ARDL) model has been employed to estimate the long-run equilibrium relationship among the variables. The results indicate that EKC does exist for Malaysia and financial development has negative impact on carbon emission. Moreover, financial development is found to have significant moderating impact on income environment relation. More financial development brings early turning point of the EKC. The results recommend that financial development can be used as one of the policy measures to reduce the environmental cost of economic growth in Malaysia.

Keywords

EKC Financial development Economic growth 

Notes

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Department of EconomicsThe Islamia University of Bahawalpur (IUB)BahawalpurPakistan
  2. 2.School of Economics, Finance and BankingUniversiti Utara MalaysiaSintok 06010, KedahMalaysia
  3. 3.Taylor’s Business School (TBS)Taylor’s University Lakeside campus, 1 Jalan TaylorsSubang JayaMalaysia

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