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Pollution and economic growth: Evidence from Central and Eastern European countries

Author

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  • Dorina Lazăr
  • Alexandru Minea

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Alexandra-Anca Purcel

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

We investigate the relationships between pollution and growth in eleven Central and Eastern European (CEE) countries. Aggregate results, robust to different estimators and control variables, reveal an increasing nonlinear link between GDP and CO2 for the group of CEE countries. However, at a disaggregated, country-level, the relationship between GDP and CO2 is characterized by much diversity among CEE countries, namely: N-shaped, inverted-N, U-shaped, inverted-U, monotonic, or no statistical link. Thus, despite an aggregated upward trend, some CEE countries managed to secure both higher GDP and lower CO2 emissions. From a policy perspective, EU policymakers could pay more attention to these countries, and amend the current unique environmental policy to account for country-heterogeneities in order to support economic growth without damaging the environment.
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Suggested Citation

  • Dorina Lazăr & Alexandru Minea & Alexandra-Anca Purcel, 2019. "Pollution and economic growth: Evidence from Central and Eastern European countries," Post-Print hal-03182346, HAL.
    • Handle: RePEc:hal:journl:hal-03182346
    DOI: 10.1016/j.eneco.2019.05.011
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    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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