Abstract

The objective of this research is to propose an indicator to assess and rank environ- mental problems caused by production within the services sector of Thailand. Factors used to cal- culate real benefit (defined as revenue for a sector, minus the environmental costs) included the costs of (1) natural resources materials, (2) energy and transportation, (3) fertilizer and pesticides, and (4) sanitary and similar services. The highest environmental cost in terms of natural resources materials and energy and transportation was in the service sector — hotels and places of lodging, while the highest environmental cost in terms of fertilizer and pesticides was in the service sec- tor — personal services. The service sector — movie theaters had the highest environmental cost for sanitary and similar services. Overall, the service sector — real estate gained the highest real benefit, while the service sector — repair not classified elsewhere had the lowest real benefit. If Thailand were to use an indicator of environmental harm, especially within the services sector, it could help to formulate efficient policies and strategies for the country in 3 areas of development (social, economic, and environmental development).

Highlights

  • It gives the advantage to the economics of the country, whose current economics has improved because the amount of capital steadily flows in the economic system

  • Many investors from other countries came to invest in Thailand, which is rational for the economics of the country [NESDB 2015]

  • The results of the environmental costs, real benefit, and forward linkage are classified by each category of the production

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Summary

Introduction

Machinery industry has been expanding continuously from 2.74% in 1999 to 33.79% in 2014. The sustainable development for the country should develop in three dimensions, collectively [Adams 2009, Ukaga et al 2010, Yigitcanlar and Dizdaroglu 2015], namely economic, social, and environmental dimension. Thailand gave priority to developing only the economic growth. The National Economic and Social Development Board [2015] stated that firms did not consider the cost from natural resources materials, energy and transportation, fertilizer and pesticides, and sanitary and similar services, which represent environmental costs. Thailand did not achieve sustainable development because economic growth goes together with higher environmental cost [Brent et al 2006, Grossmann 2009, Duque et al 2010]

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