Macroeconomic and Social Determinants of CO₂ and N₂O Emissions in EU Countries: A Static Spatial Panel Approach
Keywords:
CO₂ emissions, N₂O emissions, Static spatial durbin modelAbstract
Global warming poses a severe threat to contemporary economies, necessitating a multidimensional approach to sustainable development. This study investigates the macroeconomic and social determinants of environmental degradation in EU member economies over the 2000-2023 period. Employing static spatial panel data models to explicitly account for geographic interdependence and cross-border emission spillovers, the research evaluates the impacts of economic growth (EG), fossil and renewable energy consumption (EC), and education and health expenditures on both CO₂ and N₂O emissions. The empirical findings reveal significant positive spatial spillover effects, indicating that local pollutant levels are highly dependent on neighboring regions. Notably, the determinants exhibit asymmetric impacts: while EG mitigates CO₂ emissions, it escalates N₂O emissions; conversely, health expenditures drive up CO₂ due to energy-intensive infrastructure but effectively reduce N₂O. Furthermore, fossil EC and education expenditures generally exacerbate environmental degradation, whereas renewable EC consistently mitigates both pollutants. These findings underscore the inadequacy of single-gas environmental assessments. To address these multifaceted challenges, policy interventions should prioritize (i) transitioning energy-intensive healthcare facilities to green energy grids, (ii) aligning education investments with environmental awareness to curb scale-effect consumption, and (iii) implementing regionally coordinated, transboundary climate strategies to effectively manage emission spillovers.
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