The Impact of Blue Economy and Economic Growth on Climate Changes in Baltic Countries

Abstract

The main goal of this research is to identify the causality relations between the greenhouse gases emissions, the blue economy and the economic growth based on a panel of annual data from the three Baltic countries, members of the European Union during 2009-2018 period. After applying stationarity and cointegration tests, the long term cointegration coefficients shall be determined with the help of the Pooled Mean Group (PMG) 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 on the short and long run.