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Abstract This paper analyzes the causal link between CO2 emission, energy consumption, GDP,  square of GDP, and foreign direct investment in the Environmental Kuznets Curve for Thailand from 1971-2014. Three steps are used: bound tests to verify the presence of cointegration,  autoregressive distributed lag  (ARDL) model to check the effects of the dependent variables on the independent variable in the short run and long run, and finally, the vector error correction (VECM)  was used the detect the causal relationships among variables. The results show no cointegration between variables, confirming the short-run relationship's existence. In addition, the Granger causality results show varied outcomes, indicating that two bidirectional causal relationships exist in the short run. The first relationship is between energy consumption and GDP, and the second is between energy consumption and GDP2. In addition, there are seven unidirectional relationships where FDI affects CO2 emission, energy consumption, GDP, and GDP2, including CO2 emission affects energy consumption, GDP, and GDP2. The results of long-run causal relationships show three bidirectional causal relationships between GDP and CO2 emission, GDP2 and CO2 emission, including GDP and GDP2. Moreover, there are two unidirectional relationships: GDP influences energy consumption and GDP2 affects energy consumption. Therefore, in terms of policy, the Thai government should support using more renewable energy. Including foreign direct investment, the government should issue a policy for foreign investors' investment by regulating green factories and efficient technology in reducing pollution emissions. Downloads Download data is not yet available. Downloads FULL TEXT Published 2023-03-24 How to Cite Bunnag, T. (2023). 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. International Journal of Energy Economics and Policy, 13(2), 341–348. https://doi.org/10.32479/ijeep.14088 More Citation Formats ACM ACS APA ABNT Chicago Harvard IEEE MLA Turabian Vancouver Download Citation Endnote/Zotero/Mendeley (RIS) BibTeX Issue Vol. 13 No. 2 (2023) Section Articles License Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication. Most read articles by the same author(s) Tanattrin Bunnag, Causality Relationship between Electric Power Consumption and Economic Growth in Malaysia and Thailand: ARDL Bound Testing Approach , International Journal of Energy Economics and Policy: Vol. 12 No. 1 (2022) Tanattrin Bunnag, The Causal Relationship among CO2 Emission, Oil Consumption and Economic Growth in Thailand: ARDL Bound Testing Approach , International Journal of Energy Economics and Policy: Vol. 11 No. 6 (2021) Tanattrin Bunnag, Causality Relationship between Electricity Consumption and Economic Growth in Indonesia and Thailand , International Journal of Energy Economics and Policy: Vol. 10 No. 6 (2020) Tanattrin Bunnag, Volatility Transmission in Crude Oil, Gold, S&P 500 and US Dollar Index Futures Using VAR-MGARCH Model , International Journal of Energy Economics and Policy: Vol. 6 No. 1 (2016) Tanattrin Bunnag, Volatility Transmission in Oil Futures Markets and Carbon Emissions Futures , International Journal of Energy Economics and Policy: Vol. 5 No. 3 (2015) Tanattrin Bunnag, Hedging Petroleum Futures with Multivariate GARCH Models , International Journal of Energy Economics and Policy: Vol. 5 No. 1 (2015) Tanattrin Bunnag, Environmental Kuznets Curve Model for the United States: A Consideration of Foreign Direct Investment Variable , International Journal of Energy Economics and Policy: Vol. 13 No. 4 (2023) Make a Submission Make a Submission Dergi Kapağı

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