Pollution and economic growth: Evidence from Central and Eastern European countries

Dorina Lazăr, Alexandru Minea and Alexandra-Anca Purcel

Energy Economics, 2019, vol. 81, issue C, 1121-1131

Abstract: We investigate the relationships between pollution and growth in eleven Central and Eastern European (CEE) countries. Aggregate results, robust to different estimators and control variables, reveal an increasing nonlinear link between GDP and CO2 for the group of CEE countries. However, at a disaggregated, country-level, the relationship between GDP and CO2 is characterized by much diversity among CEE countries, namely: N-shaped, inverted-N, U-shaped, inverted-U, monotonic, or no statistical link. Thus, despite an aggregated upward trend, some CEE countries managed to secure both higher GDP and lower CO2 emissions. From a policy perspective, EU policymakers could pay more attention to these countries, and amend the current unique environmental policy to account for country-heterogeneities in order to support economic growth without damaging the environment.

Keywords: CO2 emissions; Economic growth; Central and Eastern European countries; Environmental Kuznets curve (search for similar items in EconPapers)
JEL-codes: O13 P28 Q32 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Working Paper: Pollution and economic growth: Evidence from Central and Eastern European countries (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:81:y:2019:i:c:p:1121-1131

DOI: 10.1016/j.eneco.2019.05.011

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