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

Author: Ionuț Jianu

Vol. 7 • No. 13 • November 2022


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.

JEL Classification: C33, Q53, O11, Q56.

DOI: 10.55654/JFS.2022.7.13.09