The effect of factors on CO ₂ emissions in Thailand: New insights from VECM methodology

The article examines the links between gross domestic product (GDP), fossil fuel consumption, foreign direct investment, trade openness, electricity consumption, renewable energy (REC), and carbon dioxide emissions (CO 2 ) in Thailand. The article utilizes time-series data from 1990 to 2023; the study investigates the impact of these parameters on Thailand's environmental pollution. This article investigates the determinants of CO 2 in Thailand. The Granger Causality Test method uses time-series analysis and the vector error correction model to explore how these factors interact and influence environmental pollution in Thailand. The results reveal significant interconnections, with fossil fuel consumption and electricity consumption (EC) positively correlated with CO 2 , while REC demonstrates a mitigating effect. The analysis also highlights the role of foreign direct investment and trade openness in shaping Thailand's environmental outcomes. The study concludes that transitioning to REC and implementing supportive policy measures are crucial for reducing CO 2 while maintaining GDP. The results indicate significant interconnections between these factors, highlighting the vital role of REC and policy measures in mitigating CO 2 while sustaining GDP.