Impact of Economic Growth and Energy Consumption on Greenhouse Gas Emissions: Testing Environmental Curves Hypotheses on EU Countries

Sterpu, Mihaela; Şoavă, Georgeta; Mehedințu, Anca

doi:10.3390/su10093327

Cited by 65 publications

(48 citation statements)

References 54 publications

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“…The findings were similar as in the papers [11,46,[72][73][74][75], which proved the effective policy of regulation among EU countries and showed the positive relationship between renewable energy, energy efficiency improvement, CO 2 emissions, and economic growth.…”

Section: Discussionsupporting

confidence: 87%

Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership

et al. 2019

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This paper investigates the impact of renewable energy sources (RESs), CO2 emissions, macroeconomics, and the political stability in a country on the Gross Domestic Product (GDP). The authors analyse the dynamics of RESs use, CO2 emissions, and GDP development and also test the following hypotheses: (1) The country’s economic growth is related to the energy consumption, in terms of both human resources and capital; (2) the share of the renewable energy consumption of the total energy consumption has a positive impact on the economic growth; and (3) the share of the renewable energy consumption of the total energy consumption is unrelated to the economic growth. To test the above hypotheses, the authors use the modified Cobb-Douglas production function, which also considers RES production volumes, CO2 emissions, and economic growth. The study employs data between 1995 to 2015 from the candidate and potential candidate countries for the EU membership. The data are drawn from the World Bank and Eurostat. The analyses entail panel unit root tests, Pedroni panel cointegration tests, fully modified OLS (FMOLS), dynamic OLS (DOLS) panel cointegration techniques, and the Vector Error Correction model (VECM). The findings confirm the relationship between RESs, CO2 emissions, and the GDP. For the EU countries, RESs as human resources and capital have an impact on the GDP. Moreover, the results reveal a correction retraction when the economic growth leads to an increase in renewable energy consumption. The investigation also finds that candidate and potential candidate countries for the EU membership should foster renewable energy development. The authors conclude that developing affordable and effective instruments and mechanisms to boost the RES implementation is necessary to decrease the anthropogenic impact on the environment (in particular, decreasing CO2 emissions) without any attendant reduction in the economic growth.

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Section: Discussionsupporting

confidence: 87%

Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership

et al. 2019

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“…For more details, the interested reader may refer to the excellent surveys made by Dinda [14], by Ozocku and Ozdemir [12] and by Lee et al [15]. See also [16,17] for very recent applications that use GHGs (of European Union (EU) countries) and ecological footprint (of three Eastern Asian Countries) as left-hand side variables.…”

Section: Literature Reviewmentioning

confidence: 99%

Climate Change and Economic Growth: The Role of Environmental Policy Stringency

2019

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The paper investigates the relationship between economic growth and environmental quality in the context of the Kuznets curve, which foresees that growth, while initially causing negative externalities for the environment, eventually can be seen also as the solution to environmental degradation. The novelty of the paper is to analyze the role of environmental policies, and in particular the use of market-based and non-market instruments to challenge the pollution plague and mitigate climate change. The results of fixed effects estimates on a sample of 32 countries observed for the period 1992–2012 show the existence of an inverted U-shaped relationship between per capita gross domestic product (GDP) and per-capita CO2 emissions for the quadratic specification, as well as of an N-shaped pattern for the cubic specification. Most importantly, the stringency indexes, i.e., the proxies used to account for environmental regulation, exhibit negative and strongly significant coefficients, suggesting that the policies are effective in reducing environmental damages associated with economic growth.

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“…The research results that are related to the impact of financial development on CO 2 emissions are mixed. Some studies indicate that financial development positively affects (improves) environmental quality [17][18][19]. According to another group of researchers [7,20,21], financial development decreases environmental quality, and other studies [22] indicate the lack of statistical significance between the variables.…”

Section: Review Of Literature (Background)mentioning

confidence: 99%

“…Detailed and profound understanding of how to integrate ESG criteria into investment processes is required in order to harvest the full potential of value-enhancing ESG factors. 19 Lee K.-H, & Min B., (2015) [48] Green R&D for eco-innovation and its impact on carbon emissions and firm performance…”

mentioning

confidence: 99%

Impact of Sustainable Financial and Economic Development on Greenhouse Gas Emission in the Developed and Converging Economies

2019

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Several studies have examined the relationship between environmental performance and economic development. However, most of them did not take sustainable development and financial development into account. The study argues that sustainable financial and economic development contributes to reducing greenhouse gas emissions. We use the panel data regression model to capture the relationship between greenhouse gas emission and sustainable economic and financial development. The panel data refers to the period of 2007–2017. The EU 25 countries were analysed. The results show that the relationship between sustainable financial development and environmental degradation is more relevant for converging economies than developed countries. We found that the variable “energy productivity” has the strongest impact on greenhouse gas emissions for both country groups (converging and developed); however, it increases for developed countries and it decreases the greenhouse gas emissions for converging economies. We also found that environmental taxes are an efficient instrument that mitigates greenhouse gas emissions, especially in developed countries group.

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Impact of Economic Growth and Energy Consumption on Greenhouse Gas Emissions: Testing Environmental Curves Hypotheses on EU Countries

Cited by 65 publications

References 54 publications

Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership

Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership

Climate Change and Economic Growth: The Role of Environmental Policy Stringency

Impact of Sustainable Financial and Economic Development on Greenhouse Gas Emission in the Developed and Converging Economies

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