Globalization, Energy Use and Environmental Degradation in Thailand

Abstract

Globalization is a crucial determinant of energy consumption, so this study analyzes the effect of energy consumption in the presence of globalization on environmental degradation in Thailand. Furthermore, this study uses the EKC hypothesis. It estimates the effect of energy use, globalization, and economic growth with the dynamics of rising or falling influence in global economic degradation and Validation of the EKC hypothesis in Thailand. For this purpose, use time-series data from 1970 to 2018. First of all, check the order of integrating the variables by the Augmented Dickey-Fuller and Phillips Perron test. Results indicate that there exists a unit root at the level. Hence move the DOLS and ARDL econometrics model to analyze the impact of globalization, energy use and economic growth on environmental degradation. Results confirm the validity of the EKC hypothesis in Thailand due to positive and negative association among the GDP and Square of GDP, which also confirms that the U-shaped relationship exists there. Thus, globalization condenses environmental degradation while energy consumption boosts the level of carbon emission in Thailand. Therefore, the study suggested that their needs improvement in energy policies reduce the use of conventional energy resources and move towards modern energy like nonrenewable energy, which reduces the pollution in the country and boosts the economic development level.