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Impact of Renewable and Non-Renewable Energy Consumption and CO 2 Emissions on Economic Growth in the Visegrad Countries

Author

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  • Błażej Suproń

    (Department of Economics and Accounting, Faculty of Economics, West Pomeranian University of Technology, 70-310 Szczecin, Poland)

  • Janusz Myszczyszyn

    (Department of Economics and Accounting, Faculty of Economics, West Pomeranian University of Technology, 70-310 Szczecin, Poland)

Abstract

This study presents empirical results regarding the relationships between renewable and non-renewable energy consumption, CO 2 emissions, and the GDP within the Visegrád Group (V4) countries. Using FMOLS/DOLS and ARDL approaches, along with causality tests based on the Toda–Yamamoto method, this study explores these relationships at a regional level. The study fills the research gaps for a comprehensive analysis of the indicated relationships in the V4 countries by using both individual and panel models. The findings indicate that renewable energy has a small positive impact on long-term economic growth, with non-renewable energy having a more significant effect. Moreover, CO 2 emissions have a negative impact on economic growth, suggesting an ongoing reliance on non-renewable energy sources and a burden on economic expansion. At an individual country level, the effects vary. Poland, Slovakia, and Hungary exhibit a negative relationship between CO 2 emissions and economic growth. Energy sources also differ in regards to impact: in Poland, the Czech Republic, and Slovakia, non-renewable energy significantly affects economic growth, while in Hungary, renewable energy plays a more substantial role. Causality tests reveal a causal relationship between CO 2 emissions and economic growth in the Czech Republic and Poland, suggesting that CO 2 emissions significantly influence economic expansion. In terms of energy production, renewable energy is causally related to economic growth in the Czech Republic and Slovakia. All countries demonstrate significant causality between non-renewable energy and economic growth. Additionally, a relationship between renewable energy and CO 2 emissions is confirmed in Poland.

Suggested Citation

  • Błażej Suproń & Janusz Myszczyszyn, 2023. "Impact of Renewable and Non-Renewable Energy Consumption and CO 2 Emissions on Economic Growth in the Visegrad Countries," Energies, MDPI, vol. 16(20), pages 1-20, October.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:20:p:7163-:d:1263450
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