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The Role of Environmental Regulations, Renewable Energy, and Energy Efficiency in Finding the Path to Green Economic Growth

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  • Henryk Dzwigol

    (Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
    The London Academy of Science and Business, 120 Baker St., London W1U 6TU, UK
    Department of Management, Faculty of Organization and Management, Silesian University of Technology, 26-28 Roosevelt Street, 41-800 Zabrze, Poland
    Department of Marketing, Sumy State University, 2, Rimskoho-Korsakova St., 40007 Sumy, Ukraine)

  • Aleksy Kwilinski

    (Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
    The London Academy of Science and Business, 120 Baker St., London W1U 6TU, UK
    Department of Marketing, Sumy State University, 2, Rimskoho-Korsakova St., 40007 Sumy, Ukraine)

  • Oleksii Lyulyov

    (Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
    Department of Marketing, Sumy State University, 2, Rimskoho-Korsakova St., 40007 Sumy, Ukraine)

  • Tetyana Pimonenko

    (Department of Management, Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
    Department of Marketing, Sumy State University, 2, Rimskoho-Korsakova St., 40007 Sumy, Ukraine)

Abstract

European Union (EU) countries pay meticulous attention to environmental issues and achieve carbon-free development. In this direction, reducing greenhouse gas emissions and extending renewable energy are the primary goals. At the same time, the energy price and declining energy efficiency increase countries’ environmental expenditures and hinder their capabilities for economic growth. Against this backdrop, this research aims to examine the influence of environmental regulations, renewable energy, and energy efficiency on green economic growth. The originality of the study is twofold: first, it evaluates the green economic growth of a country, which simultaneously reveals the options for economic growth and the capability to eliminate its negative effect on the environment by applying the Global Malmquist–Luenberger productivity index; second, it develops an econometric model based on panel data for EU countries for 2000–2020 to investigate the nonlinear impact of environmental regulations, the effect of extending renewable energies, and the growth of energy efficiency on a country’s green economic growth. The study applies the following methodology: a system generalized method of moments (GMM) analysis. The empirical results confirm the U-shape, nonlinear impact of environmental regulations on a country’s green economic growth along with a gradual increase in energy efficiency. In addition, the findings indicate that renewable energy is crucial for furthering a country’s green economic growth. At the same time, environmental regulation has a significant role in extending renewable energy. The study results could be used as the basis for implementing green economic growth for EU countries and improving the policy of carbon-free development of these countries.

Suggested Citation

  • Henryk Dzwigol & Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "The Role of Environmental Regulations, Renewable Energy, and Energy Efficiency in Finding the Path to Green Economic Growth," Energies, MDPI, vol. 16(7), pages 1-18, March.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:7:p:3090-:d:1110031
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