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Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe

Author

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  • Bartosz Jóźwik

    (The Institute of Economics and Finance, The John Paul II Catholic University of Lublin, Al. Racławickie 14, 20-950 Lublin, Poland)

  • Antonina-Victoria Gavryshkiv

    (The Institute of Economics and Finance, The John Paul II Catholic University of Lublin, Al. Racławickie 14, 20-950 Lublin, Poland)

  • Phouphet Kyophilavong

    (Faculty of Economics and Business Management, National University of Laos, Vientiane 7322, Laos)

  • Lech Euzebiusz Gruszecki

    (The Institute of Economics and Finance, The John Paul II Catholic University of Lublin, Al. Racławickie 14, 20-950 Lublin, Poland)

Abstract

The rapid economic growth observed in Central European countries in the last thirty years has been the result of profound political changes and economic liberalization. This growth is partly connected with reducing carbon dioxide (CO 2 ) emissions. However, the problem of CO 2 emissions seems to remain unresolved. The aim of this paper is to test whether the Environmental Kuznets Curve (EKC) hypothesis holds true for Central European countries in an annual sample data that covers 1995–2016 in most countries. We examine cointegration by applying the Autoregressive Distributed Lag bound testing. This is the first study examining the relationship between CO 2 emissions and economic growth in individual Central European countries from a long-run perspective, which allows the results to be compared. We confirmed the cointegration, but our estimates confirmed the EKC hypothesis only in Poland. It should also be noted that in all nine countries, energy consumption leads to increased CO 2 emissions. The long-run elasticity ranges between 1.5 in Bulgaria and 2.0 in Croatia. We observed exceptionally low long-run elasticity in Estonia (0.49). Our findings suggest that to solve the environmental degradation problem in Central Europe, it is necessary to individualize the policies implemented in the European Union.

Suggested Citation

  • Bartosz Jóźwik & Antonina-Victoria Gavryshkiv & Phouphet Kyophilavong & Lech Euzebiusz Gruszecki, 2021. "Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe," Energies, MDPI, vol. 14(12), pages 1-17, June.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:12:p:3415-:d:571985
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