Work detail

The Environmental Kuznets Curve Framework: Europe 2020 Greenhouse Gases Target in the EU-15 states

Author: Mgr. Pavel Korba
Year: 2015 - winter
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 80
Awards and prizes:
Abstract: In the thesis, we examine the necessity and impacts of measures adopted under the greenhouse gas
emissions target in the Europe 2020 growth strategy in the EU-15 states. For testing the necessity of
the measures, we use the Environmental Kuznets Curve (EKC) hypothesis for carbon dioxide (CO2)
emissions as the theoretical framework, the Autoregressive distributed lag model as the
econometrical technique and annual data from 1970 to 2010 (1991 to 2010 in the case of Germany).
The existence of the EKC is detected in Belgium, Denmark, France, Germany, Netherlands, Spain,
Sweden, and the United Kingdom. However, only in Denmark the EKC hypothesis is supported
significantly (on ten percent level of significance). Following the main implication of the EKC
hypothesis, only in Denmark is the economic development sufficient enough to safeguard
environmental quality; therefore, no additional measures are needed. In the remaining states, we
tested Granger causality using the Toda-Yamamoto procedure to inquire about the impacts of the
measures on gross domestic product (GDP). Our results indicate that only in Austria, Germany (with
caution due to a limited number of observations) and Ireland, the measures may impede economic
development. In the remaining states, no causality or only a causality running from GDP to CO2
emissions was found. For the sake of completeness, the EKC hypothesis was also tested in two
panels of the EU-15 states, and the results support its existence in both panels on one percent level of




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