Abstract
The paper analyses the linkages between GDP per capita, greenhouse gas (GHG) emissions, and renewable energy (RE) in the total final energy consumption and green investments (PICE) which are measured as private investments, jobs, and gross value added related to circular economy sectors. The object of the analysis is the EU countries during the 2008-2016 period (crisis and post-crisis period). In the paper, data from the following databases was used: the Eurostat, the World Data Bank, and the European Environmental Agency. For addressing the linkages between the aforementioned indicators, the following methods were applied: panel unit root test, Pedroni panel cointegration tests, and the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) panel cointegration techniques. The findings show that FMOLS and DOLS demonstrate the same results as GHG, PICE, RE influence on GDP of the EU countries. The findings prove there is linking between gross domestic product per capita, greenhouse gas emissions, renewable energy in the total final energy consumption and green investments. The findings also show that green investment (PICE) could provoke the growth of GDP per capita by 6.4%, the decline of GHG by 3.08%, and the increase of renewable energy in the total final energy consumption by 5.6%.
Highlights
The current tendency of greening the economic development contributes to analysing the most significant drivers that boost this process
The findings showed that fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) demonstrated the same results as greenhouse gas (GHG), PICE, renewable energy (RE)
The findings proved that green investment could provoke the increase of the share of renewable energy in the total energy consumption and decreasing of GHG emissions
Summary
The current tendency of greening the economic development contributes to analysing the most significant drivers that boost this process. Three are high-income countries (Slovak Republic, Hungary and Greece) and upper-middle-income countries with 2016 GNI per capita being between $3,956 and $12,235 (Bulgaria, Serbia, Romania), only Moldova belongs to low middle-income countries in this group In this case, for upper and low middle-income countries allocation of additional financial resources is a big issue due to their unstable economic situation. As indicated above, increasing the share of renewable energy in the total energy consumption requires additional financial resources In this case, it would be appropriate to analyse the statistical significance between GDP per capita, GHG emissions, renewable energy consumption and the volume of green investments. The reminder of the paper is structured in the following way: Section 2 provides a literature review on the subject and formulation of the hypothesis; Section 3 delivers data and methods applied in the study; Section 4 presents discussions of the results and Section 5 concludes
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