Economic Development and Carbon Intensity: Evidence from the EU
Abstract: The adverse effects of greenhouse gases at the beginning of the XXI century raised concerns about the link between economic development and the environment. The paper examines the interdependence between GHG emissions (predominantly CO2) per unit of GDP and the level of economic development (measured by GDP per capita). The authors test the causality between these two variables on a sample of EU27 countries in the period 1990-2020. The authors examine whether the national economies go “from left to right” or vice versa “from right to left” on the Environmental Kuznets Curve (EKC). The paper applies the Granger causality test between two variables: GDP per capita and CO2 per unit of GDP. The results of this paper present a guide for creators of public policies to improve the efficiency of their countries in the context of sustainable development.
engleski
2023
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Keywords: CO2 emissions, Economic development, Environmental Kuznets Curve