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The Role of Public Spending in CO 2 Emissions Reduction in Polish Regions: An LMDI Decomposition Approach

Katarzyna Aleksandra Wójtowicz, Jolanta Małgorzata Szołno-Koguc and Jan Braun
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Katarzyna Aleksandra Wójtowicz: Faculty of Economics, Maria Curie-Sklodowska University of Lublin, Pl. Marii Curie-Sklodowskiej 5, 20-031 Lublin, Poland
Jolanta Małgorzata Szołno-Koguc: Faculty of Economics, Maria Curie-Sklodowska University of Lublin, Pl. Marii Curie-Sklodowskiej 5, 20-031 Lublin, Poland
Jan Braun: Faculty of Economics, Maria Curie-Sklodowska University of Lublin, Pl. Marii Curie-Sklodowskiej 5, 20-031 Lublin, Poland

Energies, 2021, vol. 15, issue 1, 1-21

Abstract: Global climate change and air pollution are critical environmental problems in the modern world. Therefore, the reduction of CO 2 emissions has long been a crucial challenge for individual countries. In this area, numerous technological, legal, and economic solutions are used. The purpose of this article is to examine the impact of public spending on the level of CO 2 emissions in Polish regions. The study uses the logarithmic mean Divisia index (LMDI) method, proposing a unique proprietary set of factors that influence the level of CO 2 emissions. The results of the study confirm that public expenditure contributes to reducing CO 2 emissions at the regional level, while environmental expenditure is counterproductive. This tendency is observed mainly in regions with a high level of socioeconomic development, higher energy consumption, and high carbon emissions. The failure of environmental spending to reduce carbon dioxide emissions in Polish regions is explained by the “green paradox” hypothesis.

Keywords: CO 2 emission; public expenditures; decarbonization; LMDI approach (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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