Analyzing Short-run and Long-run Causality Relationship among CO2 Emission, Energy Consumption, GDP, Square of GDP, and Foreign Direct Investment in Environmental Kuznets Curve for Thailand

This paper analyzes the causal link between CO2 emission, energy consumption, GDP, square of and foreign direct investment in Environmental Kuznets Curve for Thailand from 1971-2014. Three steps are used: bound tests to verify presence cointegration, autoregressive distributed lag (ARDL) model check effects dependent variables on independent variable short run long run, finally, vector error correction (VECM) was used detect relationships among variables. The results show no cointegration variables, confirming short-run relationship's existence. In addition, Granger causality varied outcomes, indicating that two bidirectional exist run. first relationship is consumption second GDP2. there seven unidirectional where FDI affects GDP2, including emission long-run three GDP GDP2 Moreover, relationships: influences consumption. Therefore, terms policy, Thai government should support using more renewable energy. Including investment, issue a policy investors' by regulating green factories efficient technology reducing pollution emissions.