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Does the causal relationship between renewable energy consumption, CO2 emissions, and economic growth exist in Thailand? An ARDL approach

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  • Sasiwimon W. Paweenawat

    (School of Economics, University of the Thai Chamber of Commerce)

  • Sutida Plyngam

    (Faculty of Economics, Srinakharinwirot University)

Abstract

This paper investigates the causal relationship between CO2 emissions, energy consumption, and income in Thailand using the data between 1986 and 2012 from the Energy Statistics of Thailand. We apply an Autoregressive distributed lag (ARDL) cointegration analysis in the estimation and test whether the Environmental Kuznets Curve (EKC) hypothesis exists in Thailand. The empirical results suggest that there is inverted-U-shaped relationship between CO2 emissions and income, which affirms the validity of Environmental Kuznets Curve (EKC) hypothesis in Thailand. The causality results indicate long-run relationship between CO2 emissions, energy consumption, and income. In the short run, there is bi-directional causality between CO2 emissions and income, and between CO2 emissions and energy consumption. However, there is no causal relationship between renewable energy consumption and CO2 emissions in the manufacturing sector as a result of government supporting policy on the use of renewable energy in this sector.

Suggested Citation

  • Sasiwimon W. Paweenawat & Sutida Plyngam, 2017. "Does the causal relationship between renewable energy consumption, CO2 emissions, and economic growth exist in Thailand? An ARDL approach," Economics Bulletin, AccessEcon, vol. 37(2), pages 697-711.
    • Handle: RePEc:ebl:ecbull:eb-15-00687
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    Cited by:

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    2. Manga, Muge & Cengiz, Orhan & Destek, Mehmet Akif, 2022. "Is export quality a viable option for sustainable development paths of Asian countries?," MPRA Paper 117552, University Library of Munich, Germany.
    3. Junsong Jia & Jing Lei & Chundi Chen & Xu Song & Yexi Zhong, 2021. "Contribution of Renewable Energy Consumption to CO 2 Emission Mitigation: A Comparative Analysis from a Global Geographic Perspective," Sustainability, MDPI, vol. 13(7), pages 1-23, March.
    4. Haider Mahmood & Muhammad Shahid Hassan & Soumen Rej & Maham Furqan, 2023. "The Environmental Kuznets Curve and Renewable Energy Consumption: A Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 279-291, May.
    5. Yilmaz Bayar & Mahmut Unsal Sasmaz & Mehmet Hilmi Ozkaya, 2020. "Impact of Trade and Financial Globalization on Renewable Energy in EU Transition Economies: A Bootstrap Panel Granger Causality Test," Energies, MDPI, vol. 14(1), pages 1-13, December.

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    More about this item

    Keywords

    Energy Consumption; Pollution; Environmental Kuznets Curve; Thailand;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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