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The Causal Relationship among CO2 Emission, Oil Consumption and Economic Growth in Thailand: ARDL Bound Testing Approach

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  • Tanattrin Bunnag

    (Faculty of Science and Social Sciences, Burapha University, Thailand.)

Abstract

This paper examined the causal relationships among CO2 emission, oil consumption, and economic growth in Thailand. The data used in this study was the yearly data from 1971 to 2014. The ARDL and Granger causality approaches were employed. Overall, the empirical results showed that it had established a long-run relationship among CO2 emission, oil consumption, and economic growth. Moreover, there is a one-way (unidirectional) shortrun Granger causality between oil consumption and CO2 emission. In addition, there is a one-way (unidirectional) long-run Granger causality between oil consumption and CO2 emission and a one-way long-run causal route from oil consumption to economic growth and CO2 emission. Finally, the empirical results of this study provided that policymakers need to improve efficiency in oil consumption not to increase CO2 emissions. Furthermore, policymakers should endeavor to overcome the constraints on oil consumption to achieve economic growth.

Suggested Citation

  • Tanattrin Bunnag, 2021. "The Causal Relationship among CO2 Emission, Oil Consumption and Economic Growth in Thailand: ARDL Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 427-431.
    • Handle: RePEc:eco:journ2:2021-06-49
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    References listed on IDEAS

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    Cited by:

    1. Tanattrin Bunnag, 2023. "Environmental Kuznets Curve Model for the United States: A Consideration of Foreign Direct Investment Variable," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 130-138, July.
    2. Tanattrin Bunnag, 2023. "Analyzing Short-run and Long-run Causality Relationship among CO2 Emission, Energy Consumption, GDP, Square of GDP, and Foreign Direct Investment in Environmental Kuznets Curve for Thailand," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 341-348, March.

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    More about this item

    Keywords

    oil consumption; CO2 emission; economic growth; ARDL; and Granger causality approaches;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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