The impact of energy depletion and renewable energy on CO2 emissions in Thailand: Fresh evidence from the novel dynamic ARDL simulation

Thailand's Nationally Determined Contribution (NDC) intends to minimize CO2 emissions by 20-25%. Similarly, to focus on achieving the Paris Agreement's long-term target of remaining well below 2 degrees C, aggressive mitigation steps are necessary beyond 2030. Given the importance, the study examines the impact of energy depletion rate, renewable energy consumption, depletion rate of non-renewable energy, and GDP on CO2 emissions in Thailand from 1980 to 2018. The research using a novel dynamic ARDL simulations model [1] and frequency domain causality (FDC) test. The empirical outcomes indicate that the pace of depletion has a significant adverse impact on CO2 emissions both in the long run and short run. Additionally, we found that renewable energy has a negative and statistically significant impact on CO2 emissions in the short run. However, the depletion rate of non-renewable energy and GDP revealed a positive and statistically substantial effects on CO2 emissions in the short and long run. Also, the FDC test confirmed the short, medium, and long-run causality among DR, RE, DRNRE, and CO2 emission. The findings show that without a radical shift in Thailand's economic environment and energy infrastructure, the nation will have to face high costs in decreasing its CO2 emission. (c) 2021 Elsevier Ltd. All rights reserved.

Automated summary

The study found that CO2 emissions in Thailand are influenced by energy depletion rate, renewable energy consumption, and GDP. Without a radical shift in the economic environment and energy infrastructure, the nation will face high costs in reducing CO2 emissions.