Examining the Impact of Environmental Pollution and Life Expectancy on Economic Growth in the European Union

Vlatka Bilas () and Sanja Franc ()
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Vlatka Bilas: University of Zagreb, Zagreb, Croatia, Postal: Faculty of Economics and Business; University of Zagreb; J.F. Kennedy sq. 6; 10000 Zagreb;, Croatia
Sanja Franc: University of Zagreb, Zagreb, Croatia, Postal: Faculty of Economics and Business; University of Zagreb; J.F. Kennedy sq. 6; 10000 Zagreb; Croatia

Journal of Economic Integration, 2024, vol. 39, issue 3, 773-789

Abstract: Environmental and demographic changes fall into megatrends that shape contemporary economy and society. The main aim of this paper is to analyze the impact of environmental pollution and life expectancy on economic growth in the European Union. The main research hypothesis states that an increase in environmental pollution and life expectancy leads to an increase in real GDP. Various econometric tests were applied to examine this relationship. Firstly, the existence of long-term relationship between the variables was examined with the use of panel cointegration test. Then, cointegration coefficients in both the long-run and the short-run were estimated. Finally, the improved Granger causality test was conducted to check for causal relationship between the variables. The results indicate that environmental pollution and life expectancy series taken together Granger-cause real GDP. However, other tests i

Keywords: economic growth; pollution; life expectancy; Granger causality; EU (search for similar items in EconPapers)
JEL-codes: F00 F63 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0920

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