Environmental Kuznets curve in Indonesia, the role of energy consumption and foreign trade

This study examines the dynamic relationship among carbon dioxide (CO2) emissions, economic growth, energy consumption and foreign trade based on the environmental Kuznets curve (EKC) hypothesis for Indonesia during the period 1971–2007. The Auto regressive distributed lag (ARDL) methodology is used as an estimation technique. The results do not support the EKC hypothesis, which assumes an inverted U-shaped relationship between income and environmental degradation. The long-run results indicate that foreign trade is the most significant variable in explaining CO2 emissions in Indonesia followed by Energy consumption and economic growth. The stability of the variables in estimated models is also examined. The result suggests that the estimated models are stable over the sample period.Environmental Kuznets curve; CO2 emissions; energy consumption

Ringgit/Yuan Exchange Rate And Its Implications On Malaysia’s Trade With China And Selected Trading Partners: Evidence From Industry Data

China is the largest trading partner of Malaysia today. However, trade volume between these two countries can be strongly influenced by exchange rate fluctuations. There is also competition between Malaysia and other developing East Asian countries in the Chinese market due to the similarity of economic structures and export commodity. These concerns are crucial for the Malaysian economy, since decreasing trade deficit and increasing trade volumes with China, are very important to GDP growth, export earnings, investment and employment in Malaysia. This thesis investigates the effect of ringgit/yuan on trade between Malaysia and China at industry level by employing autoregressive distributed lag cointegration analysis and using disaggregated bilateral import and export industry annual data at three-digit Standard International Trade Classification level over the 1985-2010 period. First, currency depreciation effect is isolated to investigate the real ringgit/yuan sensitivity to 39 import and 39 export industries between Malaysia and China. The results reveal that most of the industries are sensitive to the real bilateral exchange rate in the short-run. The short-run effect shifts into the long-run in 46% industries in outpayment models and in 37% industries in inpayment models. The results also imply that a one percent real depreciation improves Malaysian trade balance by 7.45 percent. Second, the direct effect of real ringgit/yuan volatility on 151 Malaysian imports and 24 Malaysian export industries with China is investigated

Environmental Kuznets curve in Indonesia, the role of energy consumption and foreign trade

This study examines the dynamic relationship among carbon dioxide (CO2) emissions, economic growth, energy consumption and foreign trade based on the environmental Kuznets curve (EKC) hypothesis for Indonesia during the period 1971–2007. The Auto regressive distributed lag (ARDL) methodology is used as an estimation technique. The results do not support the EKC hypothesis, which assumes an inverted U-shaped relationship between income and environmental degradation. The long-run results indicate that foreign trade is the most significant variable in explaining CO2 emissions in Indonesia followed by Energy consumption and economic growth. The stability of the variables in estimated models is also examined. The result suggests that the estimated models are stable over the sample period

Economic growth and carbon emissions

In this paper, we investigate the dynamic relationship between economic growth and carbon dioxide (CO2) emissions for 181 countries. We propose a new approach based on the cross-correlation estimates to understand how economic growth and CO2 emissions are related. Our proposal is that if there is a positive cross-correlation between the current level of income and the past level of CO2 emissions and a negative cross-correlation between the current level of income and the future CO2 emissions, then CO2 emissions will decline with an increase in income over time, consistent with the environmental Kuznets curve (EKC) hypothesis. Our main findings can be summarized as follows. First, for 21 out of 181 countries (12%), there is clear evidence supporting the EKC hypothesis. Second, we ask whether a rise in income reduces emissions in the future. We find that for 49 countries (27%), income growth will reduce emissions in the future