Global Business and Management Research: An International Journal Vol. 10, No. 1 (2018, Special Issue) 280 Carbon Emissions, Energy Consumption and Economic Growth in ASEAN: A Dynamic Heterogeneous Panel Approach Seng Huat Tan Faculty of Business, Multimedia University, Malaysia Meenchee Hong* Graduate School of Business, Universiti Sains Malaysia Pulau Pinang, Malaysia Email: meenchee.hong@usm.my * Corresponding Author Abstract Purpose: The study investigates the short run dynamics and long run relationship between carbon emissions, energy consumption and economic growth in five original ASEAN member countries known as the ASEAN 5: Indonesia, Malaysia, the Philippines, Thailand and Vietnam. Design/methodology/approach: This study employs the dynamic heterogeneous panel approach to estimate the short run dynamics and long run effects between carbon emissions, energy consumption and economic growth in the ASEAN 5 for the period from 1984 to 2010. Findings: The empirical results show positive and significant coefficients between energy consumption and economic growth, indicating that an increase in these variables leads to more carbon emissions in this region. Tests of co-integration show the existence of a long run relationship between carbon emissions, energy consumption and economic growth. Research implications: Traditional panel techniques assume that slope parameters are homogenous across groups. Estimates from the dynamic heterogeneous panel model solves the heterogeneity bias problem in traditional panel techniques and generates unbiased results. Practical implications: The findings have important policy implications for the ASEAN 5 countries in implementing efficient energy consumption plans to reduce carbon emissions. Originality/value: This study is the first attempt at using the dynamic heterogeneous panel model to study the relationship between carbon emissions, energy consumption and economic growth in ASEAN countries. Keywords: Carbon Emissions, Energy, Dynamic Heterogeneous Panel Model, ASEAN Introduction In recent decades, environmental threats have become of major concern globally, particularly the issue of climate change and the rising surface temperatures on earth. The primary cause of climate change is the burning of fossil fuels (Bauer et al., 2015; Heinloth, 2003 in Per Kleinschmidt, 2009; IPCC, 2007). The use of fossil fuels in daily human activities emits vast greenhouse gases into the atmosphere. The heat trapped by the gases within the atmosphere causes the rise of sea levels, severe weather calamities, and droughts that prompt wildfires and crop failures. These environmental problems have highly affected the biodiversity of the earth, and the well-being of humans and wildlife.