This research examines the casual relationship between energy consumption, carbon dioxide emission (CO2), and gross domestic product (GDP) in ASEAN four countries namely Malaysia, Indonesia, the Philippines, and Thailand for the period of 1965-2012. Granger Causality results indicate there are uni-directional relationship running from energy consumption to GDP and running from CO2 to GDP in Malaysia, and uni-directional relationship running from GDP to energy consumption and running from energy consumption to CO2 in case of Thailand. While the evidences of bidirectional relationship between energy consumption and CO2 and between GDP and CO2 are found in Indonesia with a uni-directional relationship running from energy consumption to GDP. This study does not show any causal relationship for the Philippines. The empirical results indicate that each country has its significant different economic situation and energy policy. Using panel study may ignore the country’s character and cannot offer the suitable policy for individual country needed. The implemented policies depend on each country’s result but the supporting of service industry is highly recommended for all countries.
