Abstract

The subject of this paper is the analysis of the relationship between economic growth and the environment performance. The authors have investigated the EPI index while our research covered the period 2010-2018. The findings reveal that environmental policy directly and positively influences economic performance through the improvement of environmental conditions. However, many analysts fear that the demands of the green economy already create high costs, and that its benefits will be materialized in the long term. Finally, sustainable business operations - the green economy requires timely harmonization, in order to fulfill the goals of environmental protection.

Highlights

  • The reason for introducing the concept of green growth lies in the fact that modern economies, in order to achieve economic growth, influence the environment and jeopardize the possibility of achieving sustainable growth

  • The extremely low Environmental Performance Index (EPI) index values show that countries must work more intensively

  • The EPI index of Serbia indicates that in 2012 the country was at 103 place, which is the worst indicator of the EPI in both areas (EH and EV)

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Summary

Introduction

The reason for introducing the concept of green growth lies in the fact that modern economies, in order to achieve economic growth, influence the environment and jeopardize the possibility of achieving sustainable growth. The authors have tried to answer the question of whether economic competitiveness must be sacrificed in order to achieve an environmental protection success, as traditional economic theory had previously suggested They conclude that there is a statistically significant correlation between GDP per capita and EPI. Green policies can indirectly affect economic development, as well as increase efficiency and environmental benefits. By measuring the areas mentioned above, it is possible to gain an insight into the areas that are more developed or that lag behind in development, so as to define further directions For this very reason, the subject of this paper is the analysis of the relationship between economic growth and the environment performance, aiming to emphasize the areas that are under constrain as well as the areas that are positively affected by economic growth. We have used the EPI index while author’s research covered the period 2010-2018

Results and discussion
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