Analysis of Factors Affecting Renewable Energy Consumption Evidenced from Thailand

Abstract

In Thailand, renewable energy is an essential component in the choice of low-emissions economy growth. This study aims to investigate the factors of renewable energy consumption in Thailand. The data has been analyzed from 1980 to 2018 to identify the influencing factors for the overall energy use of renewable energy in Thailand using the Autoregressive Distributive Lag model (ARDL). The results demonstrate that renewable energy has a long-term relationship with fossil fuel consumption, financial expansion, foreign direct investment, trade openness, and GDP per capita. Further economic and financial development boosts renewables consumption of energy in Thailand. At the same time, trade and non-renewable energy (use of fossil fuel) detract from renewables consumption of energy. Hence the government of Thailand should elaborate on strategies that can increase the renewable energy amount because renewable energy plays a significant role in economic development without affecting the environment. It also increases the share of renewable energy in total energy consumption but less than renewable energy consumption.