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Assessment of Green Investments’ Impact on Sustainable Development: Linking Gross Domestic Product Per Capita, Greenhouse Gas Emissions and Renewable Energy

Author

Listed:
  • Serhiy Lyeonov

    (Economic Cybernetics Department, Sumy State University, 40007 Sumy, Ukraine)

  • Tetyana Pimonenko

    (Marketing Department, Sumy State University, 40007 Sumy, Ukraine)

  • Yuriy Bilan

    (Faculty of Management, University of Social Science, 37-400 Lodz, Poland)

  • Dalia Štreimikienė

    (Vilnius University, Kaunas Faculty, Mutines 8, LT-44280 Kaunas, Lithuania)

  • Grzegorz Mentel

    (College of Management, Department of Economics and Finance, University of Information Technology and Management in Rzeszow, 35-225 Rzeszow, Poland)

Abstract

The paper analyses the linkages between GDP per capita, greenhouse gas (GHG) emissions, and renewable energy (RE) in the total final energy consumption and green investments (PICE) which are measured as private investments, jobs, and gross value added related to circular economy sectors. The object of the analysis is the EU countries during the 2008-2016 period (crisis and post-crisis period). In the paper, data from the following databases was used: the Eurostat, the World Data Bank, and the European Environmental Agency. For addressing the linkages between the aforementioned indicators, the following methods were applied: panel unit root test, Pedroni panel cointegration tests, and the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) panel cointegration techniques. The findings show that FMOLS and DOLS demonstrate the same results as GHG, PICE, RE influence on GDP of the EU countries. The findings prove there is linking between gross domestic product per capita, greenhouse gas emissions, renewable energy in the total final energy consumption and green investments. The findings also show that green investment (PICE) could provoke the growth of GDP per capita by 6.4%, the decline of GHG by 3.08%, and the increase of renewable energy in the total final energy consumption by 5.6%.

Suggested Citation

  • Serhiy Lyeonov & Tetyana Pimonenko & Yuriy Bilan & Dalia Štreimikienė & Grzegorz Mentel, 2019. "Assessment of Green Investments’ Impact on Sustainable Development: Linking Gross Domestic Product Per Capita, Greenhouse Gas Emissions and Renewable Energy," Energies, MDPI, vol. 12(20), pages 1-12, October.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:20:p:3891-:d:276528
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