Environmental Kuznets curve in the presence of structural breaks: new evidence for individual European Countries

Author(s):  
Natalya Ketenci
Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3415
Author(s):  
Bartosz Jóźwik ◽  
Antonina-Victoria Gavryshkiv ◽  
Phouphet Kyophilavong ◽  
Lech Euzebiusz Gruszecki

The rapid economic growth observed in Central European countries in the last thirty years has been the result of profound political changes and economic liberalization. This growth is partly connected with reducing carbon dioxide (CO2) emissions. However, the problem of CO2 emissions seems to remain unresolved. The aim of this paper is to test whether the Environmental Kuznets Curve (EKC) hypothesis holds true for Central European countries in an annual sample data that covers 1995–2016 in most countries. We examine cointegration by applying the Autoregressive Distributed Lag bound testing. This is the first study examining the relationship between CO2 emissions and economic growth in individual Central European countries from a long-run perspective, which allows the results to be compared. We confirmed the cointegration, but our estimates confirmed the EKC hypothesis only in Poland. It should also be noted that in all nine countries, energy consumption leads to increased CO2 emissions. The long-run elasticity ranges between 1.5 in Bulgaria and 2.0 in Croatia. We observed exceptionally low long-run elasticity in Estonia (0.49). Our findings suggest that to solve the environmental degradation problem in Central Europe, it is necessary to individualize the policies implemented in the European Union.


Energies ◽  
2020 ◽  
Vol 13 (20) ◽  
pp. 5478
Author(s):  
Piotr Kułyk ◽  
Łukasz Augustowski

The article examines the relationship between CO2 equivalent emissions and agricultural production, taking into account additional economic and social variables that correct the considered relationship for the six Central and Eastern European countries over the period 1992–2017. The aim of the article was to confirm or negate the occurrence of the environmental Kuznets curve (EKC) in the countries of Central and Eastern Europe. Countries that experienced a political transformation and were subsequently admitted to the European Union (EU) undergoing a preparatory period were included. The topic is timely as all EU countries are required to monitor their emissions under the EU Climate Monitoring Mechanism. The discussed problem is significant due to the changes taking place in the common agricultural policy, the choice of actions to be taken by individual countries in their national policies, and the choice of instruments to support the transformation of agriculture. Agriculture has a particularly large impact on emissions, especially N2O and CH4. This paper uses GLS (Generalized least squares) panel regression with random effects taking into consideration individual effects for countries. The conducted empirical research confirmed the hypothesis regarding the occurrence of the Kuznets curve in relation to agricultural production. In this situation, it is required to increase the activities of maintaining production growth, with the support of technological changes that significantly increase pro-environmental conditions, because, in the current circumstances, this growth takes place with an increase in CO2 gas emissions, thus leading to negative external effects.


Sign in / Sign up

Export Citation Format

Share Document