Impact of Renewable and Non-Renewable Energy Consumption and CO2 Emissions on Economic Growth in the Visegrad Countries

Abstract

This study presents empirical results regarding the relationships between renewable and non-renewable energy consumption, CO2 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, CO2 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 CO2 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 CO2 emissions and economic growth in the Czech Republic and Poland, suggesting that CO2 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 CO2 emissions is confirmed in Poland.

Assessing the long-term asymmetric relationship between energy consumption and CO2 emissions: Evidence from the Visegrad Group countries

“…The subject matter and scope of research conducted to date is so extensive that it has been the subject of numerous, comprehensive literature reviews (Haberl et al, 2020;Mardani et al, 2019). In the case of the Visegrad countries, which are the subject of this study, an overview of recent research and methods in the area of the EKC curve has so far been provided by Suproń and Myszczyszyn (2023) and Leitão et al (2023). The symmetrical relationship be-tween CO 2 emissions and energy consumption in the Visegrad countries was also analysed by Myszczyszyn and Suproń (2021).…”

Exploring the Dynamic Relationships between Agricultural Production and Environmental Pollution: Evidence from a GMM-SYS Model in the Three Seas Initiative (3SI)

“…2 energy sources has become a critical decision for all countries worldwide [5,6]. In turn, agricultural production plays a crucial role in food security, but agricultural activities are also associated with the emission of significant amounts of N2O and methane (CH4) into the atmosphere [7,8].…”

Exploring the Dynamic Relationships between Agricultural Production and Environmental Pollution: Evidence from a GMM-SYS Model in the Three Seas Initiative (3SI)

“…Consequently, substantial investment is required to ensure climate protection and the implementation of sustainable development policies. Therefore, the choice between renewable and non-renewable energy sources has become a critical decision for all countries worldwide [5,6]. In turn, agricultural production is of paramount importance in ensuring food security.…”