Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership
This paper investigates the impact of renewable energy sources (RESs), CO2 emissions, macroeconomics, and the political stability in a country on the Gross Domestic Product (GDP). The authors analyse the dynamics of RESs use, CO2 emissions, and GDP development and also test the following hypotheses:...
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doaj-1a116f79312b49bd96b7c504ff2397e22020-11-25T00:01:38ZengMDPI AGSustainability2071-10502019-03-01116152810.3390/su11061528su11061528Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU MembershipYuriy Bilan0Dalia Streimikiene1Tetyana Vasylieva2Oleksii Lyulyov3Tetyana Pimonenko4Anatolii Pavlyk5Faculty of Management, Rzeszów University of Technology, Aleja Powstańców Warszawy 12, 35-959 Rzeszów, PolandLithuanian Institute of Agrarian Economics, V. Kudirkos g. 18–2, LT-03105 Vilnius, LithuaniaDepartment of Finance and Entrepreneurship, Sumy State University, Ryms’koho-Korsakova St, 2, 40000 Sumy, Sums’ka oblast, UkraineEconomics, Entrepreneurship and Business Administration Department, Sumy State University, Ryms’koho-Korsakova St, 2, 40000 Sumy, Sums’ka oblast, UkraineEconomics, Entrepreneurship and Business Administration Department, Sumy State University, Ryms’koho-Korsakova St, 2, 40000 Sumy, Sums’ka oblast, UkraineEconomics, Entrepreneurship and Business Administration Department, Sumy State University, Ryms’koho-Korsakova St, 2, 40000 Sumy, Sums’ka oblast, UkraineThis paper investigates the impact of renewable energy sources (RESs), CO2 emissions, macroeconomics, and the political stability in a country on the Gross Domestic Product (GDP). The authors analyse the dynamics of RESs use, CO2 emissions, and GDP development and also test the following hypotheses: (1) The country’s economic growth is related to the energy consumption, in terms of both human resources and capital; (2) the share of the renewable energy consumption of the total energy consumption has a positive impact on the economic growth; and (3) the share of the renewable energy consumption of the total energy consumption is unrelated to the economic growth. To test the above hypotheses, the authors use the modified Cobb-Douglas production function, which also considers RES production volumes, CO2 emissions, and economic growth. The study employs data between 1995 to 2015 from the candidate and potential candidate countries for the EU membership. The data are drawn from the World Bank and Eurostat. The analyses entail panel unit root tests, Pedroni panel cointegration tests, fully modified OLS (FMOLS), dynamic OLS (DOLS) panel cointegration techniques, and the Vector Error Correction model (VECM). The findings confirm the relationship between RESs, CO2 emissions, and the GDP. For the EU countries, RESs as human resources and capital have an impact on the GDP. Moreover, the results reveal a correction retraction when the economic growth leads to an increase in renewable energy consumption. The investigation also finds that candidate and potential candidate countries for the EU membership should foster renewable energy development. The authors conclude that developing affordable and effective instruments and mechanisms to boost the RES implementation is necessary to decrease the anthropogenic impact on the environment (in particular, decreasing CO2 emissions) without any attendant reduction in the economic growth.http://www.mdpi.com/2071-1050/11/6/1528sustainabilityrenewable energyCO2 emissionscausal relationshipgrowthstabilitypanel unit root tests |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Yuriy Bilan Dalia Streimikiene Tetyana Vasylieva Oleksii Lyulyov Tetyana Pimonenko Anatolii Pavlyk |
spellingShingle |
Yuriy Bilan Dalia Streimikiene Tetyana Vasylieva Oleksii Lyulyov Tetyana Pimonenko Anatolii Pavlyk Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership Sustainability sustainability renewable energy CO2 emissions causal relationship growth stability panel unit root tests |
author_facet |
Yuriy Bilan Dalia Streimikiene Tetyana Vasylieva Oleksii Lyulyov Tetyana Pimonenko Anatolii Pavlyk |
author_sort |
Yuriy Bilan |
title |
Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership |
title_short |
Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership |
title_full |
Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership |
title_fullStr |
Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership |
title_full_unstemmed |
Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership |
title_sort |
linking between renewable energy, co2 emissions, and economic growth: challenges for candidates and potential candidates for the eu membership |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2019-03-01 |
description |
This paper investigates the impact of renewable energy sources (RESs), CO2 emissions, macroeconomics, and the political stability in a country on the Gross Domestic Product (GDP). The authors analyse the dynamics of RESs use, CO2 emissions, and GDP development and also test the following hypotheses: (1) The country’s economic growth is related to the energy consumption, in terms of both human resources and capital; (2) the share of the renewable energy consumption of the total energy consumption has a positive impact on the economic growth; and (3) the share of the renewable energy consumption of the total energy consumption is unrelated to the economic growth. To test the above hypotheses, the authors use the modified Cobb-Douglas production function, which also considers RES production volumes, CO2 emissions, and economic growth. The study employs data between 1995 to 2015 from the candidate and potential candidate countries for the EU membership. The data are drawn from the World Bank and Eurostat. The analyses entail panel unit root tests, Pedroni panel cointegration tests, fully modified OLS (FMOLS), dynamic OLS (DOLS) panel cointegration techniques, and the Vector Error Correction model (VECM). The findings confirm the relationship between RESs, CO2 emissions, and the GDP. For the EU countries, RESs as human resources and capital have an impact on the GDP. Moreover, the results reveal a correction retraction when the economic growth leads to an increase in renewable energy consumption. The investigation also finds that candidate and potential candidate countries for the EU membership should foster renewable energy development. The authors conclude that developing affordable and effective instruments and mechanisms to boost the RES implementation is necessary to decrease the anthropogenic impact on the environment (in particular, decreasing CO2 emissions) without any attendant reduction in the economic growth. |
topic |
sustainability renewable energy CO2 emissions causal relationship growth stability panel unit root tests |
url |
http://www.mdpi.com/2071-1050/11/6/1528 |
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