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Panel Evidence from EU Countries on CO 2 Emission Indicators during the Fourth Industrial Revolution

Author

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  • Heri Bezić

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

  • Davor Mance

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

  • Davorin Balaž

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

Abstract

Research question and the most important issue in this paper relates to the determination of CO 2 emission drivers in EU and the possibility of its reduction in the era of the fourth industrial revolution. EU strategies and economic policies are directed toward sustainable development, with special emphasis on reducing CO 2 emissions towards carbon neutrality. The method used in this research is the Panel Generalized Method of Moments (GMM) two-step dynamic estimator on 27 EU countries in the period 2012–2019. The research resulted with the following findings: innovation activity, industrial structure and development, human capital, and institutional framework; these are all statistically associated with CO 2 emission levels in a negative manner, thus, contribute significantly to the reduction in CO 2 emissions. Following the empirical results, it may be concluded that reaching sustainable development goals requires the EU to enhance innovation activity, technological development, reshape its industrial structure, create high-quality human capital, and increase the quality of its public institutions.

Suggested Citation

  • Heri Bezić & Davor Mance & Davorin Balaž, 2022. "Panel Evidence from EU Countries on CO 2 Emission Indicators during the Fourth Industrial Revolution," Sustainability, MDPI, vol. 14(19), pages 1-25, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12554-:d:931953
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    Cited by:

    1. 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.

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