ASSESSMENT OF THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, ENERGY CONSUMPTION, CARBON EMISSIONS AND RENEWABLE ENERGY SOURCES IN THE V4 COUNTRIES
Keywords:energy consumption, economic growth, CO2 emissions, renewable energy sources, decarbonisation, carbon-neutral economy, V4 countries
The aim of this paper is to assess the long-term and short-term relationships between economic growth, energy consumption, CO2 emissions and the share of energy produced from renewable energy sources in the V4 countries in the period 1992-2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption, economic growth, and renewables in Czechia, Slovakia, and Poland. Economic growth has a significant impact on carbon emissions in the long run in all of these three countries. Energy consumption has a significant impact on carbon emissions in the long-run in Poland; however, renewables significantly impact carbon emissions in Czechia and Slovakia. Understanding the interrelationships between the variables examined is essential for making informed and responsible decisions on climate and energy policies, strategies and actions in individual countries.