![]() ![]() Carbon dioxide is responsible for 96% of greenhouse gas (GHG) emissions in this sector. The transport sector contributes to 36.4% of the total final energy demand (23,555 ktoe) in 2018, which is the largest energy user in Malaysia. It has experienced an average annual growth rate of 3% over the last decade. Transportation in Malaysia accounted for 8% of real gross domestic product (GDP) and 4% of employment in 2018. In doing so, it is necessary to use renewable energy, electric and hybrid vehicles, and to improve energy efficiency in this sector, in particular in road transport, it can therefore be an important sector for reducing GHG emissions and building low carbon cities in all countries around the world. Many researchers have made significant evaluations on ways to reduce environmental pollution in transport ( Solaymani et al., 2015a Soto et al., 2018 Shen and Feng, 2020). Transport undoubtedly affects the constituents of the environment and through various forms of pollution causes diseases and irreparable damage to the environment. Climate change policies in transport, such as electrification and intermodal road-rail operations, without replacing fossil-fuel power plants, increase emissions rather than achieve a low-carbon transition ( Pinto et al., 2018 Zhang and Fujimori, 2020). Among the transport subsectors, the land transport sector is also one of the leading emitters of CO 2 and one of the most difficult sectors for de-carbonization ( Giannakis et al., 2020). In 2017, the CO 2 emissions from fuel combustion in this sector were 8,040 million tonnes, the second-largest rank (24.5% of total CO 2 emissions) among other economic sectors and 18% of man-made economy emissions worldwide ( Huizenga and Peet, 2017 International Energy Agency-IEA, 2019). For example, in the world’s seven largest CO 2 emitting economies, the transport sector uses over 90% of its energy from fossil fuels ( Solaymani, 2019). Evidence indicates that the transport sector is one of the major emitters of CO 2 emissions in the world because a high share of transport energy demand comes from fossil fuels. It is one of most fast-growing sources of climate change and global warming worldwide ( Grazi and van den Bergh, 2008 Stanley et al., 2011). Transportation, as one of the fundamental infrastructures for economic development, requires energy in a significant manner. Therefore, these findings show that energy and environmental policymakers need to pay more attention to improving energy efficiency and the use of low-carbon technologies and electrification in the transport sector and the use of high-quality public transport, particularly in urban areas, for sustainable urban development. Therefore, the country maintains its CO 2 emissions level in the future because of economic development. Testing the Environmental Kuznets Curve (EKC) hypothesis recommends that Malaysia continue to be on track to reach the highest level of income and welfare to give pay more attention to the environment. Carbon intensity of energy, GDP per transport worker and urbanization contribute significantly to increases in transport CO 2 emissions in the short- and long-run. ![]() The results suggest that urbanization is the major contributor to the increase in CO 2 emissions followed by the carbon intensity of energy in the long-run. ![]() It further investigates the response of CO 2 emissions to shocks in the value of other variables by employing the generalized impulse response approach. The time period covered by the study extends from 1978 to 2018. Therefore, this study aims at estimating the relationship between transport CO 2 emissions and its key drivers using the Autoregressive Distributed Lag (ARDL) technique. It is therefore important to pay greater attention to reducing CO 2 emissions and sustainable development in this sector. With its high share of gross domestic product (GDP), it makes a significant contribution to total CO 2 emissions in Malaysia. Transport is an essential infrastructure for development. Department of Economics, Faculty of Administration and Economics, Arak University, Arak, Iran. ![]()
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