<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

This paper investigates the interdependence between environmental degradation (CO2 emissions) and economic growth (GDP per capita) in nine SEE countries over...

Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

Published Online: Sep 06, 2018

Page range: 253 - 268

Received: Jun 13, 2018

Accepted: Jun 21, 2018

DOI: https://doi.org/10.2478/ethemes-2018-0015

Keywords
CO2 emissions, GDP per capita, environmental degradation, economic growth, Granger causality testing, panel data

© 2018 Petar Mitić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

Published Online: Sep 06, 2018

Page range: 253 - 268

Received: Jun 13, 2018

Accepted: Jun 21, 2018

DOI: https://doi.org/10.2478/ethemes-2018-0015

KeywordsCO2 emissions, GDP per capita, environmental degradation, economic growth, Granger causality testing, panel data

© 2018 Petar Mitić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
CO2 emissions, GDP per capita, environmental degradation, economic growth, Granger causality testing, panel data