Nexus among carbon emissions, real output and energy consumption in Malaysia and South Korea : new evidence using non-linear autoregressive distributed lag (NARDL) analysis

Abstract

This study investigates the asymmetries in the nexus among carbon emissions, real output, and energy consumption between Malaysia and South Korea through the use of a non-linear autoregressive distributed lag (NARDL) model. The positive and negative shock of the variables indicate varying signs and magnitudes. Furthermore, the findings revealed a mixed presence of asymmetries among the nexus, as indicated in the variables for both short and long runs. The study also exemplified that the dependence of South Korea on energy consumption to generate economic growth appears to be greater than Malaysia. On the contrary, the impact of economic expansion upon the higher release of carbon emissions is greater for the case of Malaysia, in comparison to South Korea. The outcomes further displayed that higher energy consumption in both nations could lead to higher economic growth. As such, the presence of asymmetries in the relationships between the tested variables could impose significant information for future policy recommendations, particularly for these two nations.