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Trade, Economic Development and the Environment: Malaysian Experience

The Bangladesh Development Studies, Vol. 32, No. 3, pp.19-39, 2009

Posted: 15 Jan 2010  

Abul Quasem Al-Amin

University of Malaya

Chamhuri Siwar

National University of Malaysia (UKM)

Mohammad Nurul Huda Mazumder

Multimedia University

Abdul Hamid Jaafar

National University of Malaysia

Date Written: November 31, 2009

Abstract

The growth and structural transformation of the Malaysian economy over the last three decades has occurred within the framework of a liberal trade and investment regime as a small open economy. The environmental impact arises in the economy due to all goods and services produced are directly or indirectly associated with power and energy use (various petroleum oil, gas) and, according to the type of fuel utilized, with emissions as well. As trade and economic development are major factors in shaping the structure of Malaysian economy consequently, affecting countries’ energy use and various air emissions. Is there any trade-offs among energy use, environment and economic growth - in the Malaysian economy? This paper examines the Malaysian economy wide discharge implications of CO2, SO2 and NOx emissions of year 2000 and scenario projections for year 2020 using input-output analysis, which allows the calculation of emission effect in the exports-imports activities as well as throughout the economy. Following Fifth Fuel Diversification Strategy incorporated conversion efficiency until year 2020; our results show that the proposed fuel mix strategy would result in significantly higher CO2, SO2 and NOx emissions in the year 2020. This study is analytically important for rethinking of energy-mixed strategy and forecasted projections might be used to formulate Malaysian future environmental policy.

Keywords: Trade, Economic development, Energy, I-O analysis, Emission, Malaysia

JEL Classification: F49, N5, G1

Suggested Citation

Al-Amin, Abul Quasem and Siwar, Chamhuri and Mazumder, Mohammad Nurul Huda and Jaafar, Abdul Hamid, Trade, Economic Development and the Environment: Malaysian Experience (November 31, 2009). The Bangladesh Development Studies, Vol. 32, No. 3, pp.19-39, 2009. Available at SSRN: https://ssrn.com/abstract=1536331

Abul Al-Amin (Contact Author)

University of Malaya ( email )

Kuala Lumpur
Malaysia

Chamhuri Siwar

National University of Malaysia (UKM) ( email )

43600 Bandar Baru Bangi
Bangi, MS Selangor
Malaysia

Mohammad Mazumder

Multimedia University ( email )

Faculty of Management
Cyberjaya
Malaysia

Abdul Jaafar

National University of Malaysia ( email )

43600 Bandar Baru Bangi
Bangi, MS Selangor 06010
Malaysia

HOME PAGE: http://www.ukm.my

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