The effect of human capital on carbon emission in Malaysia / Muhammad Syawal Fitri Adnan

The result for this study shows that how important human capital development to restrict the carbon emission in Malaysia. Carbon emissions become the reason to the extinction of the flora and fauna and also bring the harmful to the human. This paper studies the long and short run effect of human capital on carbon emission in Malaysia from 1980 to 2014. In this study, co-integration and granger causality test that have been used to prove the relationship between carbon emission and human capital. Result shows a significant long term relationship between human capital and carbon emission. This is showing that improvement in human capital can make the effect on carbon emission reduction. Granger causality test results prove that the no bidirectional causality that exist between human capital and carbon emission in short term. The results of this study show that human capital development through education will help carbon emission reduction in the long term. This study will help the policy maker revise the policy about carbon emission and need to find the solution by education