The Impact of Greenhouse Gas on Thailand's Trade Value and The role of carbon credits in controlling the amount of greenhouse gas emissions

Abstract

Currently, the world is facing the challenges of global warming and climate change, which affect the economy and trade value, especially in the manufacturing sector that faces costs related to compliance with environmental regulations and investment in eco-friendly technologies. This research aims to examine the relationship between of Greenhouse gas emissions from various manufacturing sectors and the role of carbon credits in reducing greenhouse gas emissions, using the Univariate Time Series model and the Prais-Winsten estimation method. The analysis -reveals that the total tax variable significantly affects trade value at a 0.05 statistical level, while greenhouse gas emissions from the agricultural sector significantly impact trade value at a 0.05 level. Emissions from the energy and transportation sectors show statistical significance at the 0.10 level. This study highlights the important role of  taxes in supporting carbon credit trading and encouraging businesses to reduce greenhouse gas emissions, which significantly increases trade value, particularly in the agricultural and manufacturing sectors focused on environmental sustainability. Therefore, the government should consider using tax mechanisms as an essential tool to promote economic growth while ensuring sustainability, by supporting investments in clean technologies and renewable energy, as well as promoting the use of carbon credit systems in agriculture and the development of environmentally friendly transportation to stimulate investment and increase trade value.