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Economic development and greenhouse gas emissions in the European Union countries

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  • Giedrė Lapinskienė
  • Kęstutis Peleckis
  • Marijus Radavičius

Abstract

The paper analyses the environmental Kuznets curve (EKC) relationship between greenhouse gases and main aspects of economic development based on the panel data of 20 countries of the EU, including the data of three Baltic States, in the period 1995--2011. The fixed effect panel model was used as a framework for the analysis. The commonly used models confirmed the presence of the inverse U-shaped relationship. The novel contribution of this paper is that the factor referring to the global financial crisis was tested in expanded EKC model. Higher energy taxes, primary production of nuclear heat and R&D decrease the level of greenhouse gas emissions (GHG). The size of agriculture, industry and construction, as well as the primary production of solid fuels have a positive sign, which means that a higher value of these indicators is associated with a higher level of GHG. This implies that the analysed set of factors can be applied to adjust the EKC trend in the region and might be useful for the climate change policy adjustment.

Suggested Citation

  • Giedrė Lapinskienė & Kęstutis Peleckis & Marijus Radavičius, 2015. "Economic development and greenhouse gas emissions in the European Union countries," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(6), pages 1109-1123, December.
    • Handle: RePEc:taf:jbemgt:v:16:y:2015:i:6:p:1109-1123
    DOI: 10.3846/16111699.2015.1112830
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    3. Djula Borozan, 2022. "Revealing the complexity in the environmental Kuznets curve set in a European multivariate framework," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9165-9184, July.
    4. Magdalena Ziolo & Krzysztof Kluza & Anna Spoz, 2019. "Impact of Sustainable Financial and Economic Development on Greenhouse Gas Emission in the Developed and Converging Economies," Energies, MDPI, vol. 12(23), pages 1-30, November.
    5. Mihaela Sterpu & Georgeta Soava & Anca Mehedintu, 2018. "Impact of Economic Growth and Energy Consumption on Greenhouse Gas Emissions: Testing Environmental Curves Hypotheses on EU Countries," Sustainability, MDPI, vol. 10(9), pages 1-14, September.
    6. Loures, L. & Ferreira, P., 2019. "Energy consumption as a condition for per capita carbon dioxide emission growth: The results of a qualitative comparative analysis in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 110(C), pages 220-225.
    7. Haider Mahmood & Ateeq ur Rehman Irshad & Muhammad Tanveer, 2024. "Do innovation and renewable energy transition play their role in environmental sustainability in Western Europe?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.

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