Revised Environmental Kuznets Curve for V4 Countries and Baltic States

• Published in: Energies (Basel) 2021-06, Vol.14 (11), p.3302
• Main Authors: Simionescu, Mihaela, Wojciechowski, Adam, Tomczyk, Arkadiusz, Rabe, Marcin
• Format: Article
• Language: English
• Subjects: Alternative energy sources; Biomass; Economic development; Economic growth; EKC; Emissions; Energy consumption; Energy resources; Energy sources; Environmental Kuznets curve; Environmental protection; GHG emissions; Greenhouse effect; Greenhouse gases; Labor productivity; Pollutants; Pollution; Pollution control; Private sector; Renewable energy sources; Renewable resources; RKC; Sustainable development
• ISSN: 1996-1073; 1996-1073
• DOI: 10.3390/en14113302

Sustainable development can be achieved when economic development does not produce environmental deterioration. In this context, the aim of the paper is to evaluate the effects of economic development on GHG emissions in the Baltic States (Latvia, Letonia, and Lithuania), and in Hungary, the Czech Republic, Slovakia, and Poland (the Visegrád Group or V4 countries) in the period of 1996–2019. The study introduces dynamic ARDL panels in the context of the traditional environmental Kuznets curve (EKC) and renewable Kuznets curve (RKC). The results indicated an inverse-N-shaped and a U-shaped pattern. Energy consumption and labour productivity enhanced pollution, while domestic credit to the private sector, as a share of GDP, and renewable energy consumption supported environmental protection. The implications of these results might help these countries to achieve the targets of the European Green Deal related to the reduction of pollution and the attainment of net zero emissions by 2050. However, national regulations should further promote the use of renewable energy sources.