Connecting Blue Economy and Economic Growth to Climate Change: Evidence from European Union Countries
Roxana Maria Bădîrcea,
Alina Georgiana Manta,
Nicoleta Mihaela Florea,
Silvia Puiu,
Liviu Florin Manta,
Marius Dalian Doran
Affiliations
Roxana Maria Bădîrcea
Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza Street, 200585 Craiova, Romania
Alina Georgiana Manta
Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza Street, 200585 Craiova, Romania
Nicoleta Mihaela Florea
Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza Street, 200585 Craiova, Romania
Silvia Puiu
Department of Management, Marketing and Business Administration, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza Street, 200585 Craiova, Romania
Liviu Florin Manta
Department of Mechatronics and Robotics, Faculty of Automation, Computers and Electronics, University of Craiova, 107 Bld. Decebal, 200440 Craiova, Romania
Marius Dalian Doran
Doctoral School of Economic Sciences, Faculty of Economics and Business Administration, University of Craiova, 13 A.I. Cuza Street, 200585 Craiova, Romania
Blue Economy represents a new and interesting concept on a global level, both from the economic potential but also by the fact that it can be used to reduce environmental degradation. The main goal of this research is to identify the causality relations between the greenhouse gas emissions, the Blue Economy and economic growth based on a panel of annual data from the 28 countries that are members of the European Union (EU) over the 2009–2018 period. After applying stationarity and cointegration tests, the long term cointegration coefficients shall be determined with the help of the fully modified ordinary least squares (FMOLS) estimator. Granger causality estimation based on the vector error correction model (VECM) was applied to identify the causality relationship between the variables and to detect the direction of causality. Based on the identified causality relations, the Blue Economy has a significant influence on greenhouse gas emissions in the long run. Unidirectional causality relations were identified from the economic growth of greenhouse gas emissions in the long term, as well as from the greenhouse gas emissions on economic growth in the short term.
