The Impacts of Energy Use, Tourism and Foreign Workers on CO₂ Emissions in Malaysia

Previous studies have investigated various determinants of CO₂ emissions, such as energy use, economic expansion and population growth. However, foreign workers have not been treated as a potential determinant. Therefore, this research embarks on an investigation into the impacts of energy use, foreign workers and tourist arrivals on CO₂ emissions in Malaysia from 1982 to 2018. An ARDL approach was employed, and the findings showed that natural gas and electricity use insignificantly influence CO₂ emissions. Tourist arrivals, coal use and oil use were found to positively influence CO₂ emissions, while foreign workers and population growth insignificantly influence CO₂ emissions. It was found that in the early stages of development, higher GDP negatively influences CO₂ emissions, but in the final stages, higher GDP positively influences CO₂ emissions. These findings are important for formulating policies to reduce environmental degradation stemming from higher CO₂ emissions. Malaysia should use more renewable energy sources, and a carbon tax could be imposed to reduce environmental degradation.