The Effects of Renewable Energy, Economic Growth, and Trade on CO 2 Emissions in the EU-15

Nemanja Lojanica, Danijela Pantović (), Miloš Dimitrijević, Saša Obradović and Dumitru Nancu
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Nemanja Lojanica: Faculty of Economics, University of Kragujevac, Liceja Kneževine Srbije 3, 34000 Kragujevac, Serbia
Danijela Pantović: Faculty of Hotel Management and Tourism Vrnjačka Banja, University of Kragujevac, Vojvođanska Street No. 5A, 36210 Vrnjačka Banja, Serbia
Miloš Dimitrijević: Faculty of Economics, University of Kragujevac, Liceja Kneževine Srbije 3, 34000 Kragujevac, Serbia
Saša Obradović: Faculty of Economics, University of Kragujevac, Liceja Kneževine Srbije 3, 34000 Kragujevac, Serbia
Dumitru Nancu: Faculty of Economic Sciences, Ovidius University of Constanța, Ion Vodă Street, No. 58, 900527 Constanta, Romania

Energies, 2025, vol. 18, issue 16, 1-27

Abstract: This study examines the impact of renewable energy, economic growth, and trade openness on CO 2 emissions in the EU-15 countries over the period 1980–2022, employing the ARDL modeling framework. In addition, a panel PMG-ARDL model is employed as a robustness check. The analysis identifies cointegration among the variables in 11 out of the 15 countries studied. Economic growth is found to increase CO 2 emissions, highlighting the ongoing challenge of aligning economic expansion with environmental objectives. The estimated coefficients for economic growth range from 0.43 to 5.70, depending on the country. Renewable energy significantly reduces emissions, highlighting its critical role in achieving sustainability (the corresponding coefficient moves in the range −0.13 to −0.96). Trade openness generally shows a neutral impact on emissions across most cases. Overall, renewable energy contributes to reducing CO 2 emissions, whereas the effects of economic growth and trade openness remain mixed and country-specific. These findings highlight the need to promote cleaner technologies, enhance energy efficiency, and ensure broader access to environmentally friendly energy sources.

Keywords: renewable energy; CO 2; ARDL; case study (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: 2025
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