Impacts of the Renewable-Energy Consumptions on Thailand's Economic Development: Evidence from Cointegration Test

Abstract

Thailand is one of the biggest developing nations of 'Southeast Asia,' economy which use heavy amount of renewable energy. So, this research mainly focuses on the paradigm that examines the effects of renewable energy, and it has combined the nation's economic development predictions. To verify this, time-series data from the year 1990 the up-to-the year 2018 utilized for the examination. The research utilized the (ARDL) Auto-Regressive-Distributive-Lag with Bound test model to confirm the relationship between renewable energy and economic growth in Thailand. Time series data is use in this study so (ADF) Augmented-Dickey-Fuller test apply to check stationary of the variables and further use Granger-causality to check causal association amongst energy and growth. The study's outcomes revealed that the consumption of renewable energy in Thailand combined the nation's economic development predictions up to the range, which is the 1% boost in consumption of renewable energies to increase Thailand's economic development by 0.57 percent. Additionally, a 1 percent boost in capital formation leads towards the rise in economic development by 0.025 percent. However, a 1.70 percent boost in economic development is because of the 1 percent increase in labor efficiency. On the other side, the causality examination showed that the presence of the feedback consequence among consumption of renewable energies also the capital initiate to be bidirectional. Also, their same interpretation was revealed to existed amongst economic development and the capital. The research recommends that there must be some robust measures that help prevent the failure of the renewable energy market internationally between others and domestically.