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Jurnal Ekonomi Malaysia

54 (2) 2020 113 – 124

The Service Sector and Carbon Emission Nexus: Revisiting Environmental Kuznets Curve
Sektor Perkhidmatan dan Pelepasan Karbon: Tinjauan Semula Keluk Kuznet Alam Sekitar

Faculty of Business and Management
UiTM Cawangan Sabah
Beg Berkunci 71
88997 Kota Kinabalu Sabah
MALAYSIA

jainyassin@uitm.edu.my

Faculty of Business, Economics and Accountancy
Universiti Malaysia Sabah Jalan UMS
88400 Kota Kinabalu Sabah
MALAYSIA

miasarma@ums.edu.my

Abstract

This study aims to examine the expansion effects of the service sector on the carbon emission in a dynamic non- linear model. Using data of 34 Asian countries ranging from 1990 to 2016, this study adopts non-linear model of the Environmental Kuznets Curve and the GMM estimator. The finding provides evidence of an N-shape association between the service sector and carbon emission which indicates that the growth of the service sector fails to reduce the carbon emission perpetually. The elasticity ofcar urbanisationbon emission and in trade Asian openness countries. ar e found to be positive which indicates that an increase in urbanisation and trade openness significantly intensifies carbon emission. Meanwhile, an increase in the ageing population tends to mitigate This current study facilitates the understanding of the impact of the services sector on carbon emission as well providing a solid ground in designing a policy that incorporates the environmental standard in line with increased economic growth.

Keywords

Asian Countries; Carbon Emission; Environmental Kuznets Curve; GMM.; Service Sector

Author’s Acknowledgement

The information contained in this article was extracted from a Ph.D thesis (2019) by the author, Jain Yassin entitled “ Sectoral composition and urbanization effect on carbon emissions: evidence in Asian Countries” for Universiti Malaysia Sabah.

http://dx.doi.org/10.17576/JEM-2020-5402-10
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Yassin, , & Aralas, (2020). The Service Sector and Carbon Emission Nexus: Revisiting Environmental Kuznets Curve. Jurnal Ekonomi Malaysia, 54(2), 113–124. http://dx.doi.org/10.17576/JEM-2020-5402-10

@article{yassin2020service,
  title={The Service Sector and Carbon Emission Nexus: Revisiting Environmental Kuznets Curve},
  author={Yassin, Jain and Aralas, Sarma},
  journal={Jurnal Ekonomi Malaysia},
  volume={54},
  number={2},
  pages={113—124},
 

year={2020},
}

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