Based 1970 to year 2014. Source: The World

Based on these two graph shows, in each year the carbon dioxide emission getting worst but the GDP per capita keep increasing in every each year and there is a slightly decreasing due to the economy crisis after year 1998. Due to the increasing of the CO2 emission the government of Malaysia was created environmental law and conservation which is The environment Quality Act 1974. This is because Malaysia have National Policy on the environment have causality between sustainable development which is economic, social and cultural development and environmental conservation in 2002 (Department of Environment Ministry of Natural Resources and Environment, 2010). During 1997 July, Malaysian had a major crisis on economy since on that particular time our GDP was decline until most of Malaysian feel the pressure since Asian Financial Crisis.  Figure 1.3 Trade openness (% of GDP) from year 1970 to year 2014. Source: The World Bank Indicator.Trade openness refers the export of good and services and import of good and services. When export and import activity take place it will be advantages to the country’s economy since there is opportunity such as technology transfer, skill transfer, increase labor and total factor productivity. Due to achieving 2020 vision, Malaysia was signed Free Trade Agreement (FTA) with other such as Australia and China. From figure 1.3 show that in every each year there is fluctuation between these two catalyst GDP which is export and import of good services. During Asian financial crisis in 1997 both the export and import was increase but in the moderate movement. 1.2   The Research Problem Malaysia is the well known ASEAN country that very active in the economy after Singapore, either in export, import and GDP Per Capita. Unfortunately both of them had a similar problem in air pollution. This is because Environmental Performance Index (EPI) state that in 2016 Malaysia in rank 63 out of 180, furthermore Malaysia air quality at rank 117 out of 180. In air quality have 3 type of classification which is air pollution average exposure to pm2.5, household air quality and air pollution pm2.5 exceedance. For air pollution average exposure we score 76.81 and rank at 110 with the changes within 10 years is -16.05%, while household 95.33 and rank at 54 with 0.3% within 10 years changes. Air pollution pm2.5 exceedance we rank at 155 with -0.98% within 10 years changes and we score with 55.03. There are a few methods to measure air pollution index, firstly by air pollution average exposure to pm2.5 (fine particular matter in microgram percubic meter), health risk exposure to pm2.5 exceedance (an average of the percentage of the population exposure to pm2.5 level at 10  and 25, house hold quality (indoor solid fuel usage) and last method is average concentration of NO2 (in part per billion).Particular in air pollution will give effect such respiratory infection and other diseases like cancer. That particular also infect to human lung and blood tissues, this will causes the higher incidences of cardiovascular and lung disease. This is happen when fine particulate (pm2.5) lodge deep in lung tissues. There is plenty of poisonous of particle in air such as NO2 and CO2 . Unfortunately emission of CO2 give a huge impact to human health since the increasing of the CO2 is 70% in Greenhouse gasses (GHG) follow by 24% of methane (CH4) and 6% of nitrous oxide (N2O) (George Philander,S. 2008) and also to human daily life for instance in 2015 our neighbor Indonesia release more CO2 emission in few week . The reason is because they want to clearing their land using “slash and burn” and from that daily life activity in Malaysia and Singapore was effected since they need to face the thick haze until many of them had health problem such as asthma and infection on their lung due the haze. Indonesia report that over 2.1 million hectare of the forest and peat land in 2015 is burned. During the haze, it was slower down people to do their outside activity since it is dangerous. According to the Asthma Study and Assessment Survey, over 10 % of the patient are reported are unable to continues their daily life, social activity and even sleep. In this study, consist of some question that need to know when conducting the related topic. The question that is going to be answer include: 1) Which factors of GDP and Trade openness have causality to the CO2 emission in Malaysia.2) Did the carbon intensity of GDP in Malaysia increase over the year from 1970-20141.3 Objective Of The Study The main objective of the study is to examine the interaction between emission of carbon dioxide, GDP per capita, trade openness and carbon intensity of GDP in Malaysia. 1) To determine whether emission of CO2 can relate with Growth Domestic Product (GDP) Per capita.2) To determine the relationship between emission of CO2 and the trade openness.3) To determine Environmental Kuznet Curve exist in Malaysia. 4) To calculate carbon intensity of GDP in Malaysia within the year 1970-2014. 1.4 Significant of Study From this research it can assist the government to plan the strategy to make a better environment to Malaysia in the future. The government also can plan our environment by enforce a few regulation to reduce the emission. For example like section 21 in Environment Quality Act 1974 had mention that the minister, after discussion with the committee, may by regulation determine the acceptable condition for the emission, pollutans or waste or the emission of the noise into any particular area, fragment or component of nature and may set aside any area, section or component of the environment inside which the emission, discharge or deposit is prohibited or restricted.Moreover, if the result from these research proof that the growth of GDP per capita and Trade openness have causality with CO2 emission the government must make sure when the GDP per capita and Trade Openness is increase, CO2 emission must decrease due to many of people want a good environment for their daily life.