Guidelines for Reducing Environmental Impact in the Industrial Sector of

the Eastern Region of Thailand

YUTTHAJAKR UTTAJARERN, RUNGROJ SUBANJUI*

Faculty of Business Administration,

King Mongkut's University of Technology North Bangkok, Rayong Campus,

19 Moo 11 Nongrarok, Bankai, Rayong 21120

THAILAND

*Corresponding Author

Abstract: - This research aims to 1) study the components of the guidelines for reducing environmental impact in

the industrial sector of the Eastern Region of Thailand and 2) develop a structural equation model for the guidelines

for reducing environmental impact in the Eastern Region industrial sector of Thailand. The research sample for this

study comprises 500 entrepreneurs or managers in the industrial sector in the Eastern Region of Thailand. The

quantitative research uses a questionnaire as a research instrument. Statistical analysis used for data analysis

includes structural equation analysis. The results of the research model developed show that the assumed model is

in line with the empirical data with p-value = 0.091, CMIN/DF = 1.272, GFI = 0.980, and RMSEA = 0.023, which

meet the research assessment criteria. The analysis results based on the research hypotheses indicate that 1) Legal

components have a direct influence on the consultant components, 2) Legal components have a direct influence on

the community components, 3) Consultant components have a direct influence on the resource components, and 4)

Resource components have a direct influence on the community components. The result found that the component

related to environmental consultants directly influences the resource component with the highest Standardized

Regression Weight of 0.88. This result indicates that consulting companies must carry out environmental impact

reporting processes according to the legal requirements to produce transparent evaluations, resulting in increased

community acceptance of the information presented in the reports.

Key-Words: - Environmental impact, Industrial sector, Legal, Consulting, Community, Resources.

Received: April 23, 2023. Revised: September 25, 2023. Accepted: November 18, 2023. Published: December 29, 2023.

1 Introduction

Outdoor air pollution is a major environmental health

problem affecting everyone in low-, middle-, and

high-income countries. Ambient (outdoor) air

pollution, prevalent in urban and rural areas, was

estimated to cause 4.2 million premature deaths

annually in 2019. These fatalities result from

exposure to delicate particulate matter, leading to

cardiovascular and respiratory disease, as well as

cancers. Based on data from the World Health

Organization (WHO) in 2019, heart attacks and

strokes accounted for approximately 37% of early

deaths related to air pollution outside, while chronic

lung diseases and sudden lung infections were

associated with about 18% and 23% respectively.

Additionally, 11% of such deaths were connected to

cancers in the breathing passages. Individuals

residing in low- and middle-income countries bear a

disproportionate share of the outdoor air pollution

burden, with 89% (of the 4.2 million premature

deaths) occurring in these areas. The most substantial

burden exists within the WHO regions of South-East

Asia and the Western Pacific. The significant

function of air contamination in cardiovascular

sickness and deaths is highlighted in the most recent

burden estimates, [1]. Regulating industrial

operations is necessary in Thailand to prevent the

release of potentially hazardous materials that could

harm the environment. The government has

noticeably taken steps to improve and safeguard the

environment by enacting the "Enhancement and

Conservation of National Environmental Quality Act

of 1992," a fundamental environmental law in

Thailand. This law superseded prior rules protecting

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national environmental quality dating back to 1975.

The program addresses various contamination issues,

including water pollution, air pollution, waste

handling, noise, and vibrations. Depending on their

type, an environmental impact review is required for

specific infrastructure, condominiums, and other

initiatives, [2]. The main goal of the EIA process in

Thailand is to ensure decision-makers think about

environmental effects when approving initiatives.

This proactive step is taken to achieve sustainability

targets and prevent ecological problems arising from

significant industrial enterprises. The environmental

impact assessment process necessitates identifying

the potential effects an existing or proposed

undertaking may have on the natural surroundings. It

also involves creating strategies to lessen negative

impacts on the environment, [3].

Even though this process of examining potential

environmental consequences has been used in

Thailand for approximately three and a half decades,

debate continues. Some project leaders consider the

assessment unnecessary, while others try to avoid it.

Government officials overseeing the review face

considerable difficulties, [4]. Furthermore,

environmental impact assessment often lacks robust

backing in many developing countries, including

Thailand, usually due to political and monetary

constraints. Agencies focusing on protecting the

environment frequently find themselves with less

authority compared to organizations prioritizing

economic growth. Two primary factors that

compromise the quality of EIA reports are the

shortage of qualified environmental experts and

constraints in terms of time and funding, [5].

Thailand is no exception to these challenges.

However, there remains a need for continuous

improvement in the EIA process, improvements that

consider the specific project, the geographic context,

and associated factors to encourage the adoption of

effective public participation methodologies. Social

impact assessment (SIA) processes not only assess

the project's impact but can also be used to

understand and ultimately minimize the negative

attitude of neighboring communities, [6].

Industrial establishments are considered vital

drivers of a country's long-term economic growth.

Consequently, the government aims to develop and

strengthen these industries, making them competitive

and capable of supporting the nation's future

prosperity. However, when assessing the

environmental impact of projects or industrial

activities that do not meet the approval criteria set by

the Department of Natural Resources and

Environmental Policy and Planning, it not only poses

risks to the businesses themselves, including issues

related to trustworthiness among stakeholders, but it

can also harm the overall economic growth rate,

particularly in the industrial sector, which may not

meet the predetermined objectives. For this reason,

the researcher is keen to investigate guidelines for

reducing environmental impacts in the industrial

sector of the Eastern Region of Thailand. The aim is

to provide business operators with insights from this

research to inform project development and improve

the environmental impact assessment reports.

1.1 Research Objectives

1) To investigate the components of guidelines for

reducing environmental impacts in the industrial

sector of the Eastern Region of Thailand.

2) To develop a structural equation model for the

guidelines for reducing environmental impacts in the

industrial sector of the Eastern Region of Thailand.

2 Literature Review

2.1 Environmental Impact Assessment

An evaluation of effects on living things and human

welfare, as well as general environmental

circumstances, is called an Environmental Impact

Assessment. It is a methodical process. The goal is to

assess how activities might change things over time.

This includes plans set by law, projects, policies,

standard practices, explanations, and information

sharing. It is important to consider how current

decisions may affect the future and to learn from past

experiences, [7]. As some have noted, [8], evaluating

potential environmental effects helps examine

possible benefits and challenges of a proposed plan

or project. The review aims to understand the impacts

on people, property, and nature. It seeks ways to

lessen negative impacts while increasing positive

outcomes. The goal is to make decisions consistent

with environmental sustainability through a thorough

assessment process.

An important objective of the environmental

evaluation is discovering techniques for limiting

detrimental results while strengthening favorable

impacts. Chief among our concerns is confirming that

evaluations of intended initiatives and tasks align

with the sustainability goals intrinsic to the

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assessment procedure. The origins of environmental

effect appraisal can be traced back to the National

Environmental Policy Act of 1969 in the United

States. This concept arose from realizing numerous

publicly supported plans overlooked potential

environmental repercussions during planning and

implementation, inevitably leading to serious

environmental issues. It was initiated because several

government-funded projects failed to consider their

environmental impacts during development and

execution, resulting in substantial environmental

issues. Historically, analysis of cost, benefit, and

environmental protection was the primary focus, but

it was inadequate for safeguarding the environment

within the country. Consequently, public awareness

regarding the environment grew, leading to a

movement that eventually enabled the enforcement of

EIA as a mandatory law starting in January 1970.

EIA became a global foundation for similar

legislation worldwide in the 1970s and 1980s for

developed countries. Countries in Asia that were

developing, such as Indonesia, Taiwan, the

Philippines, Singapore, and Hong Kong, embraced

the concept of EIA within their policies by 1990.

Subsequently, African and Latin American countries

adopted this approach, [9].

In Thailand, the formal beginning of

environmental legislation occurred with the passing

of the National Environmental Quality Advancement

and Preservation Act 1975. This Act established the

National Environmental Board, tasked with specific

responsibilities, including developing policies and

recommendations to boost and safeguard

environmental quality. Another crucial role involved

assessing initiatives that could negatively impact the

natural world. Subsequently, the Act underwent

revisions in 1978, resulting in its second version.

Specifically, regarding the authority and duties of the

National Environmental Commission, these changes

aimed to address vague areas and weaknesses in the

original Act. However, despite these attempts, some

key details remained undefined, leading to challenges

in implementation. Then, the government was

required to tackle these issues; further modifications

were made in 1975 and 1981 to provide more explicit

and inclusive powers and accountabilities to the

National Environmental Board.

Furthermore, in 1981, a new policy was

introduced to evaluate the environmental effects of

specific project categories and scales. Under the

authority of the Ministry of Science, Advancement,

and the Surroundings, this policy took impact on

September 27, 1981. It centered on analyses of

environmental assets and the significance that diverse

projects or deeds could have. In 2002, the

government changed how it handles things. The

Ministry of Science, Technology, and Environment is

now responsible for the National Environmental

Quality Promotion and Conservation Act 1992

(B.E.2535). In April 2018, a revised version of the

National Environmental Quality Promotion and

Conservation Act (Version 2) was enacted, with

multiple subordinate laws issued to establish clear

frameworks and impose penalties for non-

compliance. These legal measures were intended to

compel businesses to consider environmental impacts

more seriously, ensure the creation of accepted

standards, and foster confidence from all

stakeholders in environmental quality and natural

resource conservation. The country's sustainable

development was balanced with maintaining

environmental quality and natural resources, [10].

The following are 4 benefits of EIA that need

attention and can be seen from various aspects, [11]:

1) The benefits of EIA for the government

are more related to policy formation. The government

has higher authority than any party. Therefore, the

use of an EIA is to help prevent more severe

environmental damage and pollution. In addition, the

EIA project benefits the government; this project can

be used as a form of government responsibility in

preserving and protecting the environment. The

ultimate goal remains the same: avoiding conflicts or

disasters that will endanger the community.

2) The owner of capital here can be

exemplified as a bank that holds power over the

fortune of entrepreneurs. The benefit of having an

EIA for capital owners is that it is easy to provide

loan capital for a development or project. That is if a

party borrows money from a bank to build a project

and the EIA of the project is good and of good

quality. So, banks must provide loans for this

development.

3) The next benefit of EIA is for project

owners or companies, where EIA is essential for a

company. The EIA will benefit the project owner

because it will guarantee that project development

will continue without violating the applicable laws

and regulations. An example is when a housing

complex is constructed; the developer must have a

good EIA. That way, the government and capital

owners will give permission easily. In addition, the

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community also did not feel disturbed by this

development.

4) The last benefit is for the community or

residents. EIA provides valuable benefits for the

district to know about specific development plans. In

addition, the community can also become supervisors

of projects that are being implemented. EIA

empowers the community to be more vigilant and

conscious of the various development projects. For

instance, in creating a national park, the community's

involvement ensures that the project respects

environmental considerations, such as preserving

animal habitats and minimizing disturbances.

2.2 Corporate Social Responsibility Theories

(CSR Theories)

Corporate Social Responsibility (CSR) is the

responsibility of an organization towards society and

the environment, which involves conducting business

ethically and responsibly, considering both internal

and external aspects of the organization. The goal is

sustainable development, [12]. This theory posits that

business organizations adhering to solid ethical

values acknowledge the importance of societal

responsibility. These businesses recognize that an

organization's social responsibility can lead to

societal acceptance and should encompass four

dimensions: 1) Economic Responsibility, 2) Legal

Responsibility, 3) Ethical Responsibility, and 4)

Philanthropic Responsibility. Therefore, business

organizations must consider social responsibility

across all four dimensions to gain greater acceptance

from various segments of society. The social and

environmental responsibility of organizations is

categorized into seven activities, [13], including 1)

Promoting awareness of social issues, 2) Market

activities related to societal concerns, 3) Market

activities aimed at addressing social issues, 4)

Philanthropic donations, 5) Community volunteering

and support 6) Conducting business with social

responsibility and 7) Developing and delivering

products and services.

From this perspective, it becomes evident

that business organizations should not solely pursue

profit but also emphasize the importance of social

and environmental responsibility. Moreover, this

perspective underscores that business organizations

also thrive when society thrives.

2.3 Setting the Research Hypotheses

Based on the research objectives and relevant

literature, the researcher has formulated four research

hypotheses:

Hypothesis 1 (H1): Legal components directly

influence the consultant components.

Hypothesis 2 (H2): Legal components directly

influence the community components.

Hypothesis 3 (H3): Consultant components directly

influence the resource components.

Hypothesis 4 (H4): Resource components directly

influence the community components.

2.4 Research Conceptual Framework

A research conceptual framework has been developed

through a review of the literature, related research,

and hypothesis formulation, as depicted in Figure 1.

Fig. 1: Research Conceptual Framework

3 Research Methodology

3.1 Population and Sample Groups

The population used in this research consists of

entrepreneurs or industrial plant managers authorized

to operate in Thailand's Eastern Region, totaling

11,466 entities, [14]. This research employs

hypothesis testing and analyzes results using

Structural Equation Modeling (SEM). The number of

sample groups used for analysis is calculated based

on the proportion between the sample units and the

number of parameters or variables, as per the

formula, [15]. It is recommended that the appropriate

number of sample groups for multivariate analysis

should be at least 5-10 times the number of

indicators. Since this research involves a

questionnaire with 40 questions, the minimum

number of sample groups should be approximately

400. Therefore, data was collected from 500 sample

groups using purposive sampling.

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3.2 Research Tools

A purposive sampling technique was used to select

the sample group for the qualitative research

conducted through in-depth interviews with nine

experts. The research tools used for this phase of the

study were structured interviews, with the researcher

outlining the interview guidelines into four

components: legal aspects, company components

involved in preparing reports, resource components,

and community components. The structured

interview questions were of an open-ended nature.

Subsequently, the researcher designed a draft

questionnaire, which was used for the quantitative

research. This questionnaire was in the form of a

Rating Scale, with five levels of evaluation based on

Likert's method, [16]. The researchers ensured the

quality of the questionnaire, which was examined by

five experts with knowledge and experience in the

area to assess the quality of the tool using the Index

of Item-Objective Congruence (IOC). The index

value for item congruence with the research

objectives ranged from 0.60 to 1.00, with the

appropriate value being 0.50 or higher, [17]. The

researcher then conducted a Try-Out with 30

participants who shared similarities with the intended

research population. This Try-Out aimed to determine

the Discrimination values for checklist-type

questions. The Standard Deviation (S.D.) and

Correlation values were analyzed in the rating scale

questions. The reliability analysis of the

questionnaire revealed a Discrimination value

ranging from 0.45 to 1.39, and the overall reliability

of the questionnaire was calculated to be 0.99,

considered excellent, [18]. Following this validation

process, the research tools were used for data

collection by requesting responses through

questionnaires from the sample group.

3.3 Data Analysis

Data analysis involved both descriptive statistics and

inferential statistics using the SPSS software. The

AMOS software was utilized for multivariate

statistical analysis and structural equation modeling.

Four criteria were employed to assess the data-model

fit: 1) The p-value (probability value) should be more

significant than 0.05 2) The CMIN/DF (Chi-square

divided by degrees of freedom) should be less than

2.00 3) The GFI (Goodness of Fit Index) should be

greater than 0.90 and 4) The RMSEA (Root Mean

Square Error of Approximation) should be less than

0.08, [19]. Outlining four criteria for structural

equation modeling, researchers must adapt their

research models to meet all of these criteria.

Therefore, the model can be considered complete

acceptance and reliable according to the principles of

the research process.

4 Results

The analysis of the research objectives, which aimed

to study the components of the environmental impact

reduction guidelines in the Eastern Economic

Corridor (EEC) of Thailand's industrial sector,

consisted of 4 components: Component 1, Legal

Aspects; Component 2, Companies Providing

Advisory Services (Consultant); Component 3,

Resource; and Component 4, Society (Community).

These four components were derived from a

literature review and related research. Based on the

analysis of the structural equation model developed

by the researcher, it was found that the model did not

meet the criteria for data fit, with a p-value of 0.000,

CMIN/DF of 3.482, GFI of 0.781, and RMSEA of

0.071. The statistical significance was at the 0.001

level, which did not meet the criteria. Therefore,

adjustments were made to the model by considering

pairs of variables with the highest Modification

Indices (M.I.). The model was adjusted using three

methods, [20]: 1) Adjusting the components by

removing certain variables, 2) Adjusting the

components by combining variables, and 3)

Adjusting the components by adding arrows; the

adjusted model showed a good fit with the data, with

a p-value of 0.091, CMIN/DF of 1.272, GFI of 0.980,

and RMSEA of 0.023. The statistical significance

was at the 0.001 level and met the criteria established

in compatibility with the literature and empirical

data, as shown in Figure 2.

Thirteen observational variables are explained

after the model is consistent with the empirical data,

as shown in Table 1.

Results of hypothesis testing to analyze the

causal influence of latent variables in the structural

equation model of environmental impact reduction

guidelines in the industrial sector of the Eastern

Region of Thailand are four hypotheses as follows:

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Table 1. Observational variables

Abbreviatio

Description

Legal

LGL003

Impact assessments must specify air

pollution management methods.

LGL005

Impact assessments must specify

methods for managing hazardous

chemicals.

LGL006

Impact assessments must specify odor

pollution management methods.

LGL008

There are green area projects to reduce

environmental impacts.

LGL009

Impact assessment results can be

continuously monitored throughout

the project.

Consultant

CNT028

Consulting companies must

emphasize accurate and up-to-date

data that complies with standards.

CNT030

Consulting companies must provide

information to the committee every

time.

Resources

REC055

Establish channels for disseminating

information in the report more

extensively.

REC056

Utilize information technology

systems to store project

documentation.

REC060

Include accurate data on human

resource usage in the report, such as

transportation and water consumption.

Community

CTY079

Engage in activities beyond legal

requirements to demonstrate social

responsibility to the community.

CTY081

Implement appropriate measures for

preventing, addressing, and

compensating for the impact on

affected communities.

CTY085

Consistently support various

community activities.

Hypothesis 1 (H1): The legal component

directly influences the component related to

companies providing consulting services for report

preparation. This testing result is statistically

significant at the 0.001 level with a Standardized

Regression Weight of 0.75.

Hypothesis 2 (H2): The legal component has

a significant direct influence on the community-

related component. This testing result is statistically

significant at the 0.001 level with a Standardized

Regression Weight of 0.25.

Hypothesis 3 (H3): The component related to

companies providing consulting services for report

preparation significantly influences the resource-

related component. This testing result is statistically

significant at the 0.001 level with a Standardized

Regression Weight of 0.88.

Hypothesis 4 (H4): The resource-related

component has a significant direct influence on the

community-related component. This testing result is

statistically significant at the 0.001 level with a

Standardized Regression Weight of 0.66.

Fig. 2: Structural Equation Model Path

5 Discussion

The results of the model analysis based on the

research hypotheses, as depicted in Figure 2, can be

discussed as follows:

5.1 Legal Component

The legal component significantly influences the

component related to companies providing consulting

services for report preparation. This finding aligns

with, [21], which studied the legal consulting role in

terms of responsibility and societal impact. It

revealed that when legal consulting companies for

businesses in Indonesia operate transparently, comply

with laws and regulations, possess practical

communication skills, and make informed decisions;

they can foster positive relationships between

businesses and communities. These companies can

also contribute to achieving a balance between

economic, environmental, and social problem-

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solving. Additionally, the study by, [22] found that

amending specific regulations and procedures to

make them more accessible and manageable resulted

in legal consulting companies working more

effectively. 2) The legal component also directly

influences the community component. This result is

in line with findings from, [23], which concluded that

empirical research in China showed that perceived

behavioral control, subjective norms, inward attitude,

and outward attitude all positively affect

environmental intentions, indirectly affecting the

environmental behavior of citizens and

environmental activists. Moreover, legal awareness

positively moderates the relationship between

environmental preferences and behaviors. As public

legal awareness increases, the direct influence of

these environmental intentions on environmental

behaviors also continues to grow. These findings

provide valuable insights for governments and

legislators to enhance public engagement in

environmental protection. Additionally, the study by,

[24] indicated that the effectiveness of environmental

impact assessments, as perceived by supporters,

increases public acceptance.

5.2 Consultant Component

The consultant component directly influences the

resource component, in alignment with findings

from, [25]. This study highlights the primary roles of

environmental consultants in two regulatory

programs, emphasizing their roles as trusted

facilitators in interactions between regulatory bodies

and businesses. They also serve as guardians of

public values, which have been relatively

underrepresented in existing literature on business

and environmental issues. Furthermore, the work of,

[26] stresses that environmental consultants provide

guidance and support to industries involved in

environmentally-related projects and sustainable

development. Competency evaluation allows

organizations to define the potential of existing

competencies and identify areas for improvement.

5.3 Resource Component

The research results by, [27] are helpful for business

entrepreneurs who require effective long-term

relationship management strategies to enhance value

co-creation among business partners. Resource

sharing was the most potent tool for co-creating

values among business partners. The resource

component directly influences the community

component, as corroborated by, [28]. The findings are

community monitoring can track environmental

phenomena, resource use, and natural resource

management processes of concern to community

members. It can also contribute to planning and

decision-making and empower community members

in resource management. Enhancing community

monitoring effectiveness requires improved data

collection, more efficient data management and

sharing, and more robust efforts to address

community information needs. It should also

facilitate conflict resolution and reinforce self-

determination. As highlighted by, [29], managing

natural resources using environmental-forest

education to generate information about natural

environmental phenomena has become a key factor.

Therefore, forms of environmental forest education

and community participation hold growing

importance nowadays.

6 Conclusion

Based on the testing of hypothesis 3 (H3), it was

found that the component related to environmental

consultants directly influences the resource

component with the highest Standardized Regression

Weight of 0.88. This result indicates that consulting

companies must carry out environmental impact

reporting processes according to the legal

requirements to produce transparent evaluations,

resulting in increased community acceptance of the

information presented in the reports. Government

agencies, on the other hand, must enforce legal

regulations rigorously. The environmental impact

assessment system aims to promote transparency in

safeguarding the industrial sector's social,

environmental, and public health aspects. Therefore,

every organization, whether governmental or

consulting companies, should fulfill their duties

transparently by legal principles, fostering

sustainable business growth.

7 Suggestions

1) The government should intensify legal

amendments related to environmental impact

assessments and enforce laws more rigorously to

penalize project owners who collaborate with

consulting companies in providing false

environmental impact assessment reports.

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2) Industrial establishments should initiate

their operations by adhering to relevant regulations

and engaging sincerely in activities with the public or

communities. This strategy will help foster better

relationships, thereby enhancing the image of

industrial establishments.

3) The consultant should work transparently

and conduct comprehensive environmental impact

assessments following legal procedures.

4) The local community affected by

environmental impacts should become more engaged

and express their views directly in the environmental

impact assessment process. This acting will lead to

high-quality feedback and informed opinions.

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Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

- Yutthajakr Uttajarern carried out the

conceptualization, methodology, project

admistration, resources, visualization, writing, and

editing.

- Rungroj Subanjui has implemented the

methodology, investigation, and review.

All authors discussed the results and contributed to

the manuscript.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

No funding was received for conducting this study.

Conflict of Interest

The authors have no conflict of interest to declare.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

https://creativecommons.org/licenses/by/4.0/deed.en_

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2023.19.113

Yutthajakr Uttajarern, Rungroj Subanjui

E-ISSN: 2224-3496

1254

Volume 19, 2023