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Published on: July 12, 2024
Pollution, political instabilities and electricity price in the CEE countries during the war time
Mihaela Simionescu1, Magdalena Radulescu2, Daniel Balsalobre-Lorente3
1Faculty of Business and Administration, University of Bucharest, Romania; Institute for Economic Forecasting, Romanian Academy, Bucharest, Romania.
Abstract:
Pollution, war and energy crisis are the CEE countries' most important global actual issues. Therefore, this study aims to investigate the impact of political stability and electricity price in 11 CEE countries in the period 2007-2021 to anticipate the effect of these factors on pollution in times of political and energy crisis. The common results based on DOLS/FMOLS and CCEMG estimations indicate that political stability enhances CO2 emissions, while higher electricity prices for non-household consumers reduce pollution. An inverted-U pattern was observed in the relationship between growth and pollution, while renewable energy consumption is the most powerful tool to reduce CO2 emissions. These results are the starting point for policy recommendations.
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