Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

Mitić Petar () and Cvetanović Slobodan ()
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Mitić Petar: Institute of Economic Sciences, Belgrade, Republic of Serbia
Cvetanović Slobodan: University of Niš, Faculty of Economics, Niš, Republic of Serbia

Economic Themes, 2018, vol. 56, issue 2, 253-268

Abstract: This paper investigates the interdependence between environmental degradation (CO2 emissions) and economic growth (GDP per capita) in nine SEE countries over the period 1992 – 2016. The results of Granger causality testing indicate that in the short run there is a positive bidirectional causal relationship between CO2 emissions and GDP per capita, but in the long run, there is causality running just from GDP per capita to CO2 emissions, with the 2.0279% speed of adjustment. In pursuit of adequate policy measures, SEE countries need to work on inclusion of non-EU countries into European Union’s Emissions Trading Scheme, further developing carbon taxation policies and using renewable energy sources on a larger scale.

Keywords: CO2 emissions; GDP per capita; environmental degradation; economic growth; Granger causality testing; panel data (search for similar items in EconPapers)
JEL-codes: C33 O44 Q50 R11 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecothe:v:56:y:2018:i:2:p:253-268:n:7

DOI: 10.2478/ethemes-2018-0015

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