title: Financial development and sectoral CO2emissions in Malaysia.
abstract: The paper examines the impacts of financial development on sectoral carbon emissions (CO2) for environmental quality in Malaysia. Since the financial sector is considered as one of the sectors that will contribute to Malaysian economy to become a developed country by 2020, we utilize a cointegration method to investigate how financial development affects sectoral CO2emissions. The long-run results reveal that financial development increases CO2emissions from﻿ the transportation and oil and gas sector and reduces CO2emissions from manufacturing and construction sectors. However, the elasticity of financial development is not significant in explaining CO2emissions from the agricultural sector. The results for short-run elasticities were also consistent with the long-run results. We conclude that generally, financial development increases CO2emissions and reduces environmental quality in Malaysia.
authors.affiliation: Faculty of Economics and Management, Universiti Putra Malaysia, Serdang, Malaysia. keibimaji@gmail.com.|Department of Economics, Bauchi State University, Gadau, Nigeria. keibimaji@gmail.com.
authors.forename: Ibrahim Kabiru
authors.initials: IK
authors.lastname: Maji
authors.affiliation: Faculty of Economics and Management, Universiti Putra Malaysia, Serdang, Malaysia.
authors.forename: Muzafar Shah
authors.initials: MS
authors.lastname: Habibullah
authors.affiliation: Faculty of Economics and Management, Universiti Putra Malaysia, Serdang, Malaysia.
authors.forename: Mohd Yusof
authors.initials: MY
authors.lastname: Saari
mesh_terms: D000393:Air Pollutants / Q000032:analysis / Q000737:chemistry; D002245:Carbon Dioxide / Q000032:analysis / Q000737:chemistry; D003906:Developing Countries; D057217:Economic Development; D008296:Malaysia
chemical_list: D000393:Air Pollutants; D002245:Carbon Dioxide
keywords: Cointegration method; Financial development; Malaysia; Sectoral carbon emissions