Economic impact of green deal in the Baltic States: balancing growth and sustainability
ENAmong scholars, the debate on environmental sustainability and balancing economic growth remains a hot topic. In 2019, the European Union introduced the green deal to achieve climate neutrality by 2050 and become the first climate-neutral continent. The motivation for this research is to examine the economic impact of the green deal and carbon emission levels in the Baltic states using the econometric technique of cointegration regression analysis from 2018 to 2024. Overall, the study outcomes show that the impact of economic growth on the green deal and carbon emissions is positive in Lithuania, where the green deal has been beneficial. However, in Latvia, the impact of economic growth on carbon emissions and the green deal is not as effective. Similarly, in Estonia, there is a need to revise policies, as economic growth is associated with increasing emission levels. The recommendations of this study are helpful not only for the Baltic states, but and also benefit for the European Union and other regions working toward a zero-emission target. Keywords: economic growth, green deal, impact, carbon emissions, sustainability.
