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Charting The Green Path: Empirical Insights Into Eu-Ukraine Environmental Convergence

Author

Listed:
  • Andrii Verstiak

    (Yuriy Fedkovych Chernivtsi National University, Ukraine)

  • Konon Bagrii

    (Chernivtsi Institute of Trade and Economics of State University of Trade and Economics, Ukraine)

  • Oksana Verstiak

    (Chernivtsi Institute of Trade and Economics of State University of Trade and Economics, Ukraine)

Abstract

The aim of the study is to conduct an empirical analysis of environmental convergence between the EU and Ukraine. This involves evaluating a set of indicators, identifying clusters of EU and Ukrainian countries to obtain adequate empirical estimates, and directly assessing not only the convergence process but also other patterns of environmental and economic development. Methodology. In addition to the classical models of beta, sigma, gamma and delta convergence, the study of environmental convergence should apply methods that focus on the growth process and the increase in the level of economic development of less developed countries, rather than simply on the reduction of development disparities. Such methods should emphasise the importance of efforts and policies aimed at bringing countries closer together and creating favourable conditions for their growth towards higher levels of development. The authors use the concept of upward convergence (divergence). The empirical analysis of environmental convergence between the EU and Ukraine was conducted for the period 2000-2021, divided into two sub-periods: 2000-2013 and 2014-2021, in order to identify trends in the Russian military invasion in 2014 and its impact on environmental and economic convergence during the war. Results. Studies of different types of convergence between Ukraine and the EU show different results: some indicators indicate convergence, while others show divergence. In fact, the interaction between Ukraine and the EU is a complex process that manifests itself differently depending on the specific indicators. Some aspects of cooperation are already leading to convergence and similarity between the countries, while others are leading to divergence. This demonstrates the need to implement effective strategies and policies of cooperation between Ukraine and the EU to achieve sustainable development. Practical implications. The results obtained can be used to develop environmental policies, commitments, forms of manifestation and main consequences for the ecological and economic system of Ukraine in the context of the Association Agreement and the European Green Deal. The fulfilment of obligations under these initiatives should become the basis for developing effective means of ensuring sustainable development through the implementation of the relevant state environmental and economic policy. Value/originality. The advantage of the proposed approach is that it takes into account negative growth, including environmental pollution. The results of the upward convergence assessment serve as a basis for the development of appropriate strategies, mechanisms, policies, effective governance, investment in human capital and infrastructure, and the creation of favourable conditions for entrepreneurship and innovation.

Suggested Citation

  • Andrii Verstiak & Konon Bagrii & Oksana Verstiak, 2023. "Charting The Green Path: Empirical Insights Into Eu-Ukraine Environmental Convergence," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 9(4).
  • Handle: RePEc:bal:journl:2256-0742:2023:9:4:9
    DOI: 10.30525/2256-0742/2023-9-4-65-71
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    References listed on IDEAS

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    3. Peter C. B. Phillips & Donggyu Sul, 2007. "Transition Modeling and Econometric Convergence Tests," Econometrica, Econometric Society, vol. 75(6), pages 1771-1855, November.
    4. François Perroux, 1950. "Economic Space: Theory and Applications," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(1), pages 89-104.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    environmental convergence; green growth; European integration; upward/downward convergence; Association Agreement;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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