Renewable Energy Use, CO2 Emissions, and Economic Growth in Thailand
Keywords:
renewable energy consumption, CO2 emissions, growth, causality, ARDL model, ThailandAbstract
This study investigates the nexus among renewable energy consumption, CO2 emissions, and economic growth in Thailand during the period 1995–2022. The study used the autoregressive distributed lag (ARDL) bound test, the vector error correction model (VECM), and the Granger causality test to analyze the linkages among variables. The developed ARDL model showed that a 1% change in renewable energy consumption and CO2 emissions increased growth by 0.101% and 0.439%, respectively, in the long run. The causality tests identified a positive, unidirectional causal relationship of CO2 emissions to economic growth in the short run, whereas in the long run, the model indicated bidirectional causality of renewable energy consumption and CO2 emissions with economic growth, highlighting the challenge of balancing economic expansion with environmental concerns in Thailand. The results suggest that Thailand should efficiently implement renewable energy policies to enhance economic growth and contribute to sustainable development.
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