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The Role of Public Spending in CO 2 Emissions Reduction in Polish Regions: An LMDI Decomposition Approach

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  • Katarzyna Aleksandra Wójtowicz

    (Faculty of Economics, Maria Curie-Sklodowska University of Lublin, Pl. Marii Curie-Sklodowskiej 5, 20-031 Lublin, Poland)

  • Jolanta Małgorzata Szołno-Koguc

    (Faculty of Economics, Maria Curie-Sklodowska University of Lublin, Pl. Marii Curie-Sklodowskiej 5, 20-031 Lublin, Poland)

  • Jan Braun

    (Faculty of Economics, Maria Curie-Sklodowska University of Lublin, Pl. Marii Curie-Sklodowskiej 5, 20-031 Lublin, Poland)

Abstract

Global climate change and air pollution are critical environmental problems in the modern world. Therefore, the reduction of CO 2 emissions has long been a crucial challenge for individual countries. In this area, numerous technological, legal, and economic solutions are used. The purpose of this article is to examine the impact of public spending on the level of CO 2 emissions in Polish regions. The study uses the logarithmic mean Divisia index (LMDI) method, proposing a unique proprietary set of factors that influence the level of CO 2 emissions. The results of the study confirm that public expenditure contributes to reducing CO 2 emissions at the regional level, while environmental expenditure is counterproductive. This tendency is observed mainly in regions with a high level of socioeconomic development, higher energy consumption, and high carbon emissions. The failure of environmental spending to reduce carbon dioxide emissions in Polish regions is explained by the “green paradox” hypothesis.

Suggested Citation

  • Katarzyna Aleksandra Wójtowicz & Jolanta Małgorzata Szołno-Koguc & Jan Braun, 2021. "The Role of Public Spending in CO 2 Emissions Reduction in Polish Regions: An LMDI Decomposition Approach," Energies, MDPI, vol. 15(1), pages 1-21, December.
    • Handle: RePEc:gam:jeners:v:15:y:2021:i:1:p:103-:d:709972
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    References listed on IDEAS

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    1. Assaad Ghazouani & Wanjun Xia & Mehdi Ben Jebli & Umer Shahzad, 2020. "Exploring the Role of Carbon Taxation Policies on CO 2 Emissions: Contextual Evidence from Tax Implementation and Non-Implementation European Countries," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
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    Cited by:

    1. Di Peng & Haibin Liu, 2022. "Measurement and Driving Factors of Carbon Emissions from Coal Consumption in China Based on the Kaya-LMDI Model," Energies, MDPI, vol. 16(1), pages 1-19, December.

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