Energy Intensity, Financial Development, Emissions and Growth in Malaysia

This paper investigates the dynamic relationship between energy intensity, financial development, emissions, and economic growth in Malaysia using the econometric time series method to test the long-term relationship between selected variables. Based on samples from 1980 to 2019, our empirical findings suggest that all the variables' interests are cointegrated in the long run. Moreover, energy intensity and economic growth have the expected outcome where a higher growth rate in Malaysia promotes more efficient energy use. Meanwhile, emissions and financial development provide evidence that energy intensity will increase as emissions and financial development increase.