The current study intends to investigate the pathway toward sustainability in Malaysia while observing the effects of tourism and transportation services on economic growth and carbon emissions. For this purpose, the study applied the quantile autoregressive distributed lag approach during the period of 1970-2018 along with Granger causality to explore dynamic and asymmetric causal associations between the proposed variables. The empirical outcomes indicate that the error correction parameters are significant across major quantiles, confirming the presence of steady-state equilibrium in the long run. The results show that tourism and transportation services significantly contribute to economic growth in the long run; however, their contribution varies at different quantiles. On the other hand, tourism and transport services were found to mitigate carbon dioxide emissions mainly across higher emission quantiles, confirming the sustainability of the transport and tourism sector in Malaysia. We also observe a bidirectional causality between model variables. These results suggest important policy implications.

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