THE NEXUS BETWEEN MACROECONOMICS VARIABLES AND THE CO2 EMISSIONS: EMPIRICAL EVIDENCE FROM MALAYSIAN ROAD TRANSPORT SECTOR

Abstract

In the present paper, an attempt is made to examine the nexus between the macroeconomic variables and the CO2 emissions from road transport sector in Malaysia. Using vector error correction model during 1980 to 2009 period, the empirical results show that there is an evidence of a long-run relationship among the variables. The findings of this research also indicate that a bi-directional relationship exist between the number of vehicles and CO2 emission in the shortrun