The issue on the linkage among energy consumption, output and environmental
degradation has come to the fore and merited attention from policy makers. The
importance of energy consumption in generating economic activities remains
indisputable. However, the use of energy is claimed to be detrimental to the
environment. Therefore, this study aims to investigate the linkage among energy
consumption in several sectors, sectorial output and carbon dioxide emission in
Malaysia. Data from 1990 to 2014 were analysed using the panel data analysis.
Results show that a rise in output can reduce environmental degradation in
Malaysia. However, the use of energy can degrade environmental quality. The
inevitable and substantial use of energy types in the industrial and
transportation sectors can trigger environmental woes. Therefore, these findings
are vital to shed light on the issue and help policy makers formulate policies.
