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Assessing Impact of Economic Development on Water Pollution in Thailand Using Dynamic Spatial Econometrics Analysis

Although most developed nations have discovered various solutions to their conventional pollution problems, many developing countries still suffer from environmental degradations. Thailand is a prime example of these countries. Its environmental problems have increased in severity, becoming more complicated to solve despite current global awareness regarding environmental issues. These problems provide the context in which “sustainable development” has been introduced as a key paradigm in creating a balance between economic development and environment. The aim of current paper is to empirically examine the sustainability in Thailand in terms of EKC relationship between economic activities and water pollution, and discuss the implications of our findings on policy implementations. The conventional EKC relationship between water pollution and income is statistically insignificance for the case of Thailand’s water pollution data. However, water pollution tends to be inverted-U related with other output level of economic activities such as manufacturing and agricultural products. The study also found that previous investment in education and environment statistically decreases water pollution at the present time.