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Correlation of Greenhouse Gas Emissions with Economic Growth in the European Union (2010-2019)

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  • Torok Laszlo

    (Department of Engineering Management and Enterprise, Industrial Process Management Institute, Faculty of Engineering, University of Debrecen, 4032 Debrecen, temeto u.2-4., Hungary.)

Abstract

A prominent research area in energy economics is the study of the correlation between economic growth and CO2 emissions. Using the combined application of correlation calculation and cluster analysis based on empirical data, the study typifies and arranges the EU member states into homogeneous groups based on the pattern of the two variables moving together based on data from the period 2010-2019. This methodology allows a test of the "decoupling" theory that can be used to describe the interaction between environmental pressures and economic development. The results can be used to infer the status of clustered Member States in the decoupling process. The results are ambivalent across member countries. For several EU Member States, different degrees of decoupling can be observed, i.e. GDP growth has been accompanied by a reduction of the ecological footprint in those countries. However, there are also member countries where the decoupling did not work, because the reduction of CO2 emissions was accompanied by a decrease in GDP.

Suggested Citation

  • Torok Laszlo, 2023. "Correlation of Greenhouse Gas Emissions with Economic Growth in the European Union (2010-2019)," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 102-110, July.
    • Handle: RePEc:eco:journ2:2023-04-12
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    More about this item

    Keywords

    CO2 emissions; European Union; Energy Economics; Energy-Growth Relationship; Decoupling; Correlation; Cluster Analysis;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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