Role of economic growth, financial development, trade, energy and FDI in environmental Kuznets curve for Lithuania: evidence from ARDL bounds testing approach

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Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Straipsnis / Article
Language:
Anglų kalba / English
Title:
Role of economic growth, financial development, trade, energy and FDI in environmental Kuznets curve for Lithuania: evidence from ARDL bounds testing approach
In the Journal:
Inžinerinė ekonomika [Engineering Economics]. 2020, 31 (1), p. 39-49
Keywords:
EN
CO2 emissions; Financial development; EKC; Trade; Energy; FDI; ARDL
Summary / Abstract:

ENThis paper examines the long-run relationship between carbon dioxide (CO2) emission and economic growth, financial development, trade, energy consumption, and foreign direct investment in the case of Lithuania by employing time series data of 1989-2018. In particular, this paper aims to test whether the Environmental Kuznets Curve (EKC) relationship for economic growth and financial development holds or not. The autoregressive distributed lag (ARDL) bounds testing procedure is employed for the empirical analysis. The results validate the existence of EKC in the long-run as well as in the short-run since there is an inverted U-shaped relation between CO2 emissions and economic growth. Conversely, we could not validate the EKC relationship between CO2 emissions and financial development. Trade and energy consumption are other significant determinants of CO2 emissions. The causality analysis results show that unidirectional causality runs from economic growth to CO2 emissions and trade to CO2 emissions. The validity of the EKC hypothesis indicates that Lithuania can achieve short-term, medium-term, and long-term climate change mitigation and adoption goals and objectives approved by the Parliament of the Republic of Lithuania without deteriorating its economic growth. [From the publication]

ISSN:
1392-2785, 2029-5839
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Lithuanian achievements in terms of CO2 emissions based on production side in the context of the EU-27 / Genovaitė Liobikienė, Justina Mandravickaitė, Danguolė Krepštulienė, Jurga Bernatonienė, Arūnas Savickas. Technological and economic development of economy. 2017, t. 23, Nr. 3, p. 483-503.
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2020-07-28 20:31:06
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