Economic development and environmental degradation: A panel ARDL/PMG model for EU-27 countries

Abstract

This research aims to examine the relationship between economic development and environmental degradation in European Union over the period 2000-2019 using a Panel ARDL/PMG model. In this respect, I have used GDP per capita expressed in PPS to catch the economic development and greenhouse gas emission per capita as a proxy for environmental degradation. The study confirms a positive impact of greenhouse gas emissions (per capita) on GDP (per capita) on short-run, but also a negative effect on long-run – the long-run effect being present in 24 EU Member States.

Keywords

• economic development
• environment
• gdp
• greenhouse gas emissions
• panel ardl / pmg model