A comparison of CO2 emissions, load capacity factor, and ecological footprint for Thailand's environmental sustainability

Abstract

This study analyzes the determinants of carbon dioxide (CO2) emissions, ecological footprint, and load capacity factor for the first time by applying the Fourier quantile causality test to data for the period 1975q1-2018q4 for Thailand. In this context, the study investigates the validity of the pollution haven hypothesis (PHH) by comprehensively examining the effects of foreign direct investment, renewable energy, import, export, natural resources rent, and income on environmental quality. The findings of the study show that the validity of the PHH varies depending on the environmental indicators, because while the PHH is valid for the CO2 and the load capacity factor, it is not valid for the ecological footprint. Moreover, renewable energy is the only element that can increase the environmental quality. All other variables have a negative effect on the load capacity factor, which worsens the environmental quality. The results of the study suggest that the Thai government should take measures to regulate natural resources rent and foreign capital inflows by considering environmental concerns and promoting renewable resources.