The effects of total factor of productivity, natural resources and green taxation on CO2 emissions in Malaysia

• Published in: Environmental science and pollution research international Vol. 27; no. 36; pp. 45121 - 45132
• Main Authors: Loganathan, Nanthakumar, Mursitama, Tirta Nugraha, Pillai, Lekha Laxman Kunju, Khan, Alam, Taha, Roshaiza
• Format: Journal Article
• Language: English
• Published: Berlin/Heidelberg Springer Berlin Heidelberg 01.12.2020; Springer Nature B.V
• Subjects: Aquatic Pollution; Atmospheric Protection/Air Quality Control/Air Pollution; Carbon; Carbon dioxide; Carbon dioxide emissions; Earth and Environmental Science; Economic sectors; Ecotoxicology; Emissions; Emissions control; Empirical analysis; Environment; Environmental Chemistry; Environmental Health; Environmental Kuznets curve; Environmental science; Fiscal policy; Heterogeneity; Homogeneity; Hypotheses; issues and policy; Malaysia; Natural resources; Productivity; Quantiles; Research Article; Taxation; taxes; Waste Water Technology; Water Management; Water Pollution Control; Malaysia; Natural resources; E62; Q01; Green taxation; Quantile regression; Carbon emissions; TFP; Q52
• ISSN: 0944-1344; 1614-7499; 1614-7499
• DOI: 10.1007/s11356-020-10291-4

This study attempts to investigate the environment cleanness between the total factor productivity, natural resources and green taxation on Malaysia’s clean environment. Using the environmental Kuznets curve (EKC) hypothesis, this study employs the bootstrap quantile estimates based on the annual data series covering the period of 1970–2018 to analyse the quantile effect factors affecting environment cleanness in Malaysia. The empirical estimates of this study reject the EKC hypothesis throughout the quantile levels, while the green taxation shows a negative sign which indicated government fiscal policies are reducing carbon emission in the upper quantiles. There is also homogeneity slope equality effect between total factor of productivity and green taxation on carbon emissions in the middle and upper quantile levels, while natural resources are indication heterogeneity effect on all quantile levels. From the policy point of view, if Malaysia wants to get environment cleanness, there is a need for comprehensive policies of total factor of productivity with environment innovation-friendly and technological improvement in all major economic sectors of the country.