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Updated: Nov 1, 2025
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Published on: January 9, 2016
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Revised environmental Kuznets Curve in CEE countries. Evidence from panel threshold models for economic sectors
1Institute for Economic Forecasting of the Romanian Academy, 13, Calea 13 Septembrie, 050711, Bucharest, Romania. mihaela_mb1@yahoo.com.
Summary
This study examines greenhouse gas (GHG) emissions in Central and Eastern European countries from 1990-2019. It reveals complex relationships between economic growth, agriculture, and pollution, proposing policies for sustainable development.
Area of Science:
- Environmental Economics
- Sustainable Development
- Pollution Control
Background:
- The European Green Deal necessitates re-evaluating economic development's impact on environmental quality.
- Greenhouse gas (GHG) emissions in Central and Eastern European countries (CEEs) require targeted policy interventions.
- Understanding the nexus between economic growth and pollution is crucial for environmental sustainability.
Purpose of the Study:
- To analyze GHG emissions in six CEE countries (Bulgaria, Poland, Hungary, Slovak Republic, Czech Republic, Romania) between 1990 and 2019.
- To investigate the relationship between economic indicators and pollution using Environmental Kuznets Curve (EKC) and Renewable Energy Kuznets Curve (RKC) models.
- To propose economic policies for pollution reduction and sustainable development in the region.
Main Methods:
- Panel threshold and dynamic panel models were employed to analyze GHG emissions.
- The study considered GHG emissions from all economic sectors and specifically from agriculture.
- Environmental Kuznets Curve (EKC) and Renewable Energy Kuznets Curve (RKC) frameworks were applied.
Main Results:
- An inverted N-shaped relationship was found between Gross Domestic Product (GDP) and overall GHG emissions.
- An N-shaped pattern was observed between agricultural value added and pollution.
- A U-shaped Renewable Energy Kuznets Curve (RKC) was confirmed for both the overall economy and the agricultural sector.
Conclusions:
- Economic growth exhibits complex, non-linear impacts on GHG emissions and agricultural pollution in CEEs.
- Renewable energy adoption follows a U-shaped pattern in relation to economic development, indicating potential for decoupling.
- Empirical findings support the development of targeted economic policies to foster pollution reduction and promote sustainable development in the analyzed countries.
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