Abstract
Decarbonization is an activity aimed at reducing greenhouse gas emissions to limit climate change and global warming. Ensuring macroeconomic stabilization is the basis for ecological action. The question is whether macroeconomic stabilization helps companies, institutions and countries act for decarbonization. This article presents research on the impact of components of macroeconomic stabilization on decarbonization and energy efficiency in the largest greenhouse gas emitters in the European Union from 1990 to 2020. We focus on the following countries, France, Germany, Italy, Poland and Spain. The contribution to knowledge is using the pentagon of macroeconomic stabilization to assess macroeconomic stabilization’s impact on decarbonization and energy efficiency. According to the correlation coefficients, the Ordinary Least Squares and the Seemingly Unrelated Regression method, there is a statistically significant impact of components of macroeconomics stabilization on decarbonization and energy efficiency. Moreover, our models show a different strength and direction of relationships between the explained and explanatory variables. Research results confirm the necessity to coordinate the macroeconomic with environmental policy. We think that it is essential to use effective tools of economic support (European Union Emissions Trading System, environmental taxes) and greater pressure from European Union institutions on countries that emit harmful substances.
Highlights
Economic growth with respect for nature and social protection is crucial for sustainable development
It seems that macroeconomic stabilization (MSP) is essential for decarbonization (DCO2) and energy efficiency (EN) [7,8,9]
This paper aims to assess the impact of internal (MSPI) and external factors (MSPE) of macroeconomic stabilization on decarbonization and energy efficiency in the largest greenhouse gas emitters in the European Union from 1990 to 2020
Summary
Economic growth with respect for nature and social protection is crucial for sustainable development. The key challenge for the economies is decarbonization (eliminating carbon dioxide emissions due to their harmfulness to the environment) and increasing energy efficiency (using energy efficiency means acquiring the same effect under the same conditions with less energy). It seems that macroeconomic stabilization (MSP) is essential for decarbonization (DCO2) and energy efficiency (EN) [7,8,9]. Macroeconomic stabilization is one of the goals of state intervention in the economy It is the configuration of economic indicators, political conditions and the country’s position on global markets [10,11]. If the governments focus on macroeconomic stabilization, it may neglect or reduce socially and environmentally responsible activities
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