DOI: https://doi.org/10.14710/ijred.2021.32233

Investigating the Causal Linkage Among Economic Growth, Energy Consumption and CO2 Emissions in Thailand: An Application of the Wavelet Coherence Approach

1Faculty of Economic and Administrative Science, Department of Business Administration, Cyprus International University, Northern Cyprus, Mersin 10, Turkey

2Faculty of Economics and Administrative Science, Department of Business Management, Girne American University, Northern Cyprus, Mersin 10-, Turkey

Received: 13 Jul 2020; Revised: 30 Aug 2020; Accepted: 4 Sep 2020; Available online: 12 Sep 2020; Published: 1 Feb 2021.
Editor(s): H Hadiyanto
Open Access Copyright (c) 2021 The Authors. Published by Centre of Biomass and Renewable Energy (CBIORE)
Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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Abstract

The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand?. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.

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Keywords: CO2 emissions;Energy usage;Economic growth; Toda-Yamamoto Causality; Wavelet coherence technique
Funding: No Fund was received

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Section: Original Research Article
Language : EN
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