Renewable Energy Consumption and Human Development in Thailand Evidence from Cointegration and Causality
Keywords:
Renewable Energy Consumption, Human Development, Thailand, ARDL, Impulse Response FunctionAbstract
This paper is to examine the causal relationship between renewable energy consumption and human development via human development index in order to find out how renewable energy influences the process of human development in the short- and long- run. The results from ARDL model indicate that the use of renewable energy has a positive impact on human development in Thailand in the long run with respect to the utilization of biomass and solar energy as well as onshore wind power. Hydropower in turn shows a limit to benefit for human development process. The result of environmental condition confirms an existence of human development process from renewable energy use. Carbon dioxide emissions from fossil fuel combustion has a positive impact on human development in Thailand based on the ARDL result. A pathway to mitigation of environmental impacts would intend to support potential emission reduction through a boost of renewable energy deployment especially the use of biomass, solar energy, and onshore wind power rather than intend to achieve emission control over a limit to the burning of fossil fuels directly.
The result of causality confirms bidirectional relationship between renewable energy consumption and human development in Thailand. This reflects that the use of renewable energy benefits human development. Likewise, the process of human development leads to the deployment of renewable energy. However, the outcome of renewable energy deployment tends to be not immediately existed based on the result of impulse response function, which expects it to be appeared within the fifth period. Besides, the result of causality also shows that unidirectional relationship is between economic growth and human development with a negative impact when entering into the third period. This reflects that economic growth partially contributes to the process of human development and seems less important for human development process. In this respect, these novel findings of the study would help policymaker to better understand a pathway of human development index improvement beyond the effect of economic growth solely.
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