The aim and novelty of this study consist of estimating the nexus between CO2 (carbon dioxide) emissions, energy use, economic growth, and financial development for ten Central and Eastern European countries (CEEC) over the 2000–2017 period, starting from Environmental Kuznets Curve (EKC) theory. The Fully Modified Ordinary Least Squares (FMOLS) method was used for testing the cointegration relationship. Granger causality estimation based on the Vector Error Correction Model (VECM) and Pairwise Granger causality test were applied to identify the causality relationships between the variables and to identify the direction of causality. The implementation of the tests led to significant conclusions. In the long run, the levels of CO2 emissions and energy use do not have any influence on economic growth. Furthermore, there is a bidirectional causality among economic growth in terms of GDP and financial development variables. Thus, increasing financial development will generate more CO2 emissions and more energy use, and increasing economic growth will lead to rising financial development. In the short run, increasing financial development will generate more CO2 emissions and will lead to increased energy use and economic growth. Also, a bidirectional causality is being revealed between financial development and CO2 emissions. This indicates that financial development may help to reduce CO2 emissions.
According to the objectives of the European Union concerning the climate changes, Member States should take all the necessary measures in order to reduce the greenhouse gas emissions. The aim of this study is to identify the causality relations between greenhouse gases emissions, added value from agriculture, renewable energy consumption, and economic growth based on a panel consisting of 11 states from the Central and Eastern Europe (CEECs) in the period between 2000 and 2017. The Autoregressive Distributed Lag (ARDL) method was used to estimate the long-term relationships among the variables. Also a Granger causality test based on the ARDL – Error Correction Model (ECM) and a Pairwise Granger causality test were used to identify the causality relationship and to detect the direction of causality among the variables. The results obtained reveal, in the long term, two bidirectional relationships between agriculture and economic growth and two unidirectional relationships from agriculture to greenhouse gas emissions and renewable energy. In the short term, four unidirectional relationships were found from agriculture to all the variables in the model and one unidirectional relationship from renewable energy to greenhouse gas emissions.
Blue Economy represents a new and interesting concept on a global level, both from the economic potential but also by the fact that it can be used to reduce environmental degradation. The main goal of this research is to identify the causality relations between the greenhouse gas emissions, the Blue Economy and economic growth based on a panel of annual data from the 28 countries that are members of the European Union (EU) over the 2009–2018 period. After applying stationarity and cointegration tests, the long term cointegration coefficients shall be determined with the help of the fully modified ordinary least squares (FMOLS) estimator. Granger causality estimation based on the vector error correction model (VECM) was applied to identify the causality relationship between the variables and to detect the direction of causality. Based on the identified causality relations, the Blue Economy has a significant influence on greenhouse gas emissions in the long run. Unidirectional causality relations were identified from the economic growth of greenhouse gas emissions in the long term, as well as from the greenhouse gas emissions on economic growth in the short term.
This research aims to identify the influence of fiscal policy, financial development and economic growth on the increase of renewable consumption in Romania. To achieve our objective, we employ bivariate regressions through the Autoregressive Distributed Lag method, over the 2000–2020 period, to examine these influences. We find clear evidence that the variables observed (implicit tax rate on energy, external debt stocks, real GDP per capita, environmental tax revenues from energy taxes, and market capitalisation of listed domestic companies) have significant effects on the use of renewable energy. Four unidirectional causal relationships were identified in the long run: two from independent variables towards the dependent variable and two from the dependent variables towards two other independent variables. The importance of this study is that its results can contribute to the finding of the most suitable solutions to improve renewable energy consumption in Romania and mitigate the impact of climate change. Consequently, the results of this study reveal significant conclusions and policy recommendations for Romania moving towards sustainable and green economic growth, through a balanced set of policies and measures smartly applied, accompanied by a solid rate of absorption of green funds.
One of the European Union’s (EU) objectives regarding climate change is a 40% reduction in greenhouse gas emissions by 2030, ensuring that member states focus on sustainable development. The aim of this study was the comparison of a three-dimensional relationship between green taxation, environmental performance and economic growth for the time period between 1995 and 2017 in Romania and Sweden. The novelty consists of simultaneously using the double dividend theory and environmental Kuznets curve theory for Romania. The autoregressive distributed lag (ARDL) method was used for testing the cointegration relationship. The Granger causality estimation based on the ARDL-error correction model was applied to identify the causality relationship between the variables and the pairwise Granger causality test to detect the direction of causality. The implementation of the tests led to the conclusion that environmental taxes will have a significant influence on the reduction of greenhouse gas emissions in the long run in both Romania and Sweden, while in the short run, no such influence will be noticed. Also, in Romania, in the long term, there was a bidirectional causality relationship between economic growth and greenhouse gas emissions, while in Sweden, the causality relationship was from economic growth to greenhouse gas emissions.
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