Does paddy cultivation in Malaysia contributes to CO2 emissions? An econometric analysis
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This study was conducted to investigate whether paddy cultivation in Malaysia do indeed contribute to increased CO2e. Johansen (1991) co-integration method was used to investigate the relationship between these variables, and the result clearly shows that they are highly co-integrated or literally means that they (both variables) share long term time trending patterns. The long run relationship is further investigated based on granger causality and vector error correction model (VECM), and the result again clearly shows that paddy production indeed granger causes the increased CO2e. Dynamic Ordinary Least Square (DOLS) method was also employed to check the robustness and consistency of the findings and the results are consistent and robust with the VECM estimations. The findings of the study clearly show the dire needs for the government to invest more on the R&D in the paddy production sector in order not to deteriorate further the environment albeit CO2e while securing the food security.
Johansen co-integration test , Paddy , Climate change , Carbon dioxide emissions , VECM
Alias, Emmy Farha and Abdul Hamid, Baharom and Radam, Alias and Yacob, Mohd Rusli. (2012). Does paddy cultivation in Malaysia contributes to CO2 emissions? An econometric analysis. In Hooi Hooi Lean & Saidatulakmal Mohd (Eds.), Proceedings of USM-AUT International Conference 2012 Sustainable Economic Development: Policies and Strategies (pp. 131-137). Penang, School of Social Science, USM.
School of Social Science, USM