Another Look into the Relationship between Economic Growth, Carbon Emissions, Agriculture and Urbanization in Thailand: A Frequency Domain Analysis

Mário Nuno Mata,Mehmet Altuntaş,Joaquim António Ferrão,António Morão Lourenço,Rui Miguel Dantas,Seun Damola Oladipupo,Dervis Kirikkaleli,Jéssica Nunes Martins,Rjoub Husam

doi:10.3390/en14165132

Abstract

This empirical study assesses the effect of CO2 emissions, urbanization, energy consumption, and agriculture on Thailand’s economic growth using a dataset between 1970 and 2018. The ARDL and the frequency domain causality (FDC) approaches were applied to assess these interconnections. The outcome of the bounds test suggested a long-term association among the variables of investigation. The ARDL outcomes reveal that urbanization, agriculture, energy consumption, and CO2 emissions positively trigger Thailand’s economic growth. Additionally, the frequency domain causality test was used to detect a causal connection between the series. The main benefit of this technique is that it can detect a causal connection between series at different frequencies. To the understanding of the authors, this is the first study in the case of Thailand that will apply the FDC approach to capture the causal linkage between GDP and the regressors. The outcomes of the causality test suggested that CO2 emissions, urbanization, energy consumption, and agriculture can predict Thailand’s economic growth in the long term. These outcomes have far-reaching implications for economic performance and Thailand’s macroeconomic indicators.

Highlights

IntroductionIn most nations around the globe, sustainable economic development is the primary objective of economic policy [1,2]
To the best of the authors’ knowledge, no prior studies have assessed this interconnection by employing the frequency domain causality test for the case of Thailand
The ARDL long estimate validates the positive energy–growth association, which implies that an upsurge in energy use causes increased GDP growth

Summary

Introduction

In most nations around the globe, sustainable economic development is the primary objective of economic policy [1,2]. Economic growth and civilization have led to increased carbon dioxide (CO2 ) and other greenhouse gas (GHG) emissions [3,4,5]. There is a general opinion in the literature about how use of energy, CO2 pollution, and economic growth are related (GDP). In this regard, the level of CO2 emissions which mainly contribute to GHG emissions is determined by energy consumption and economic growth [6]. Several economic activities aimed at economic development trigger emissions of CO2. In Thailand, since 2010, the consumption of energy per capita has been constant, at 2.1 toe in 2019 and at 2800 KWh per capita in 2019

Methods

Results

Conclusion