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Globalization and GHG Emissions in the EU: Do We Need a New Development Paradigm?

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  • Nela Vlahinić Lenz

    (Faculty of Economics and Business, University of Rijeka, Ivana Filipovića 4, 51000 Rijeka, Croatia)

  • Barbara Fajdetić

    (Faculty of Economics and Business, University of Rijeka, Ivana Filipovića 4, 51000 Rijeka, Croatia)

Abstract

The European Union (EU) has adopted a new development strategy based on “green” growth and announced carbon neutrality by 2050. Still, the EU’s previous development path was mainly based on trade openness and globalization, with positive economic and negative climate impacts. The aim of this paper was to test the hypothesis of globalization-induced carbon emissions in order to evaluate a possible future development path. The Arellano–Bond estimator was employed for dynamic panel analysis in 26 EU countries over the period 2000–2018. A significant and positive relationship was found between economic globalization and passenger mobility and greenhouse gas (GHG) emissions, while environmental taxes can correct the negative climate effect. On the other hand, social and political dimensions of globalization reduce negative climate impacts. To achieve net zero emissions, the EU needs to continue its global climate leadership, extend the use of environmental taxes, and stimulate economic growth based on low-carbon technologies such as hydrogen, energy storage, and CCUS.

Suggested Citation

  • Nela Vlahinić Lenz & Barbara Fajdetić, 2021. "Globalization and GHG Emissions in the EU: Do We Need a New Development Paradigm?," Sustainability, MDPI, vol. 13(17), pages 1-18, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9936-:d:628944
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    5. Hatem Hatef Abdulkadhim Altaee & Saya Jamal Azeez, 2023. "Impacts of Environment-Related Technology, Structural Change, and Globalization on Greenhouse Gas Emissions: Evidence from Top Twenty Emitter Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 690-697, November.
    6. Sadeq Damrah & Elma Satrovic & Mohamad Atyeh & Fekri Ali Shawtari, 2022. "Employing the Panel Quantile Regression Approach to Examine the Role of Natural Resources in Achieving Environmental Sustainability: Does Globalization Create Some Difference?," Mathematics, MDPI, vol. 10(24), pages 1-19, December.
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    8. Xenaneira Shodrokova & Anna Yulianita & Abdul Bashir, 2024. "Economic Globalization, Renewable Energy, and CO2 Emissions in Selected Emerging Countries," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 23(3), pages 602-622.
    9. Nouran M. Taha & Dalia M. Ibrahiem & Rasha Sameh, 2025. "Aid-environment-globalization nexus revisited: evidence from a dynamic panel threshold analysis," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    10. Salma Bibi & Misbah Aslam & Ilham Haouas & Miraj-ul Haq, 2025. "Synergizing Financial Innovation and Green Technology for Carbon Emission Reduction in Financially Developed Economies," Journal of Economic Sciences, Federal Urdu University Islamabad, Department of Economics, vol. 4(2), pages 37-56, December.
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