Decoupling economic growth from greenhouse gas emissions: the case of the energy sector in V4 countries

Keywords: greenhouse gas emissions, energy sector, Gross Value Added, decoupling, V4 countries

Abstract

Research background: The production and use of energy satisfies human needs, but also gives rise to a host of adverse environmental pressures, such as air pollution and waste generation. The issue of energy efficiency and climate chance resonates in the energy sector as one of the main producers of green-house gas emissions (GHG). While the European Union in general is doing well in reducing emissions and increasing the share of renewables, unfortunately, there are countries that are still far from reaching their goal.

Purpose of the article: The paper is focused on the quantitative assessment of the link between the economic growth of the energy sector and the production of GHG emissions by the energy sector in V4 countries during the period 1995–2016. For this purpose, decoupling analysis will be realized.

Methods: The decoupling of economic growth and the environmental pressures caused by this growth has a rich tradition within the sustainable development literature. The decoupling method was chosen for its ability to link economic and environmental indicators. Decoupling elasticity will be calculated with the aim of assessing the relationship between the economic growth of the energy sector (measured in GVA) and GHG emissions produced by the energy sector in V4 countries within the research period. Decoupling elasticity indicates different forms of the decoupling and coupling of the two variables.

Findings & Value added: The results of the analysis suggest the prevailing strong decoupling of the economic growth of the energy sector and GHG emissions produced by the energy sector, which can be considered a positive trend. The findings of this paper are relevant for the government, state and public institutions and stakeholders in general, who play important roles in the preparation of programs, projects and policies to make energy generation, transport and use more efficient and environmentally sustainable.

Downloads

Download data is not yet available.

References

Adamišin, P., & Vavrek, R. (2015). Analysis of the links between selected socio-economic indicators and waste man-agement at the regional level in the Slovak republic. In P. Nijkamp (Ed.) 5th Central European conference in regional science - conference proceedings. Košice: Technical University of Košice.

Ayres, R. U., & van den Bergh, J. C. J. M. (2005). A theory of economic growth with material/energy resources and dematerialization: interaction of three growth mechanisms. Ecological Economics, 55(1). doi: 10.1016/j.ecolecon. 2004.07.023.

Ballingall, J., Steel, D., & Briggs, P. (2003). Decoupling economic activity and transport growth : the state of play in New Zealand. In T. Brennand (Ed). 26th Australasian transport research forum Wellington New Zealand. Wellington: Institute of Highway Technology

Berkhout, P. H. G., Muskens, J. C., & Velthuijsen, W. J. (2000). Defining the rebound effect. Energy Policy, 28(6-7). doi: 10.1016/S0301-4215(00)00022-7.

Binswanger, M. (2001). Technological progress and sustainable development: what about the rebound effect? Ecological Economics, 36(1). doi: 10.1016 /S0921-8009(00)00214-7.

Bruyn, S. de, Markowska, A., Jong, F. de, & Blom, M. (2009). Resource productivity, competitiveness and environmental policies. Delft report. Retrieved from http://cedelft.eu (1.04.2019).

Chovancová, J., & Vavrek, R. (2020). (De) coupling analysis with focus on energy consumption in EU countries and its spatial evaluation. Polish Journal of Environmental Studies, 29(3). doi: 10.15244/pjoes/110613.

Daly, H. E. (1993). Steady-state economics: a new paradigm. New Literary History, 24(4). doi: 10.2307/469394.

Directorate-General for Research and Innovation (European Commission) (2018). The Strategic Energy Technology (SET) Plan. Joint Research Centre. doi: 10.2777/48982

EC (1988). The greenhouse effect and the Community. Communication to the Council. Commission work programme concerning the evaluation of policy options to deal with the "Greenhouse Effect." Draft Council Resolution on the greenhouse effect and the Community. COM (88) 656 final, 16 November 1988.

EEA (2013). Final energy consumption by sector (CSI 027/ENER 016). Retrieved form http://www.eea.europa.eu/data-and-maps/indicators/final-energy-consum ptionby-sector-5/assessment-1 (28.10.2018).

Finel, N., & Tapio, P. (2012). Decoupling Transport Co2 From GDP. In Finland futures research centre ebook. Helsinki: University of Turku.

Greening, L. A., Greene, D. L., & Difiglio, C. (2000). Energy efficiency and consumption - the rebound effect - a survey. Energy Policy, 28(6-7). doi: 10.1016/S0301-4215(00)00021-5.

Herring, H., & Roy, R. (2007). Technological innovation, energy efficient design and the rebound effect. Technovation, 27(4). doi: 10.1016/j.technovation.2006 .11.004.

Huttmanová, E. (2015). Evaluation of sustainability in the EU countries using selected indicators of sustainable development. In Environmental economics, education and accreditation in geosciences: ecology, economics, education and legislation. Vol. 3 : Conference proceedings : 15th international multidisciplinary scientific geoconference SGEM. doi: 10.5593/SGEM2015/ B53/S21.036.

Kan, S., Chen, B., & Chen, G. (2019). Worldwide energy use across global supply chains: Decoupled from economic growth? Applied Energy, 250. doi: 10.1016 /j.apenergy.2019.05.104.

Kotulič, R., & Adamišin, P. (2012). Economic effects of the foreign direct investments management on the development of Slovak regions. In V. Klímová & V. Žítek (Eds.). International colloquium on regional sciences:15th international colloquium on regional sciences. Brno: Masaryk University.

Mazzanti, M. (2008). Is waste generation de-linking from economic growth? Empirical evidence for Europe. Applied Economics Letters, 15(4). doi: 10.108 0/13504850500407640.

Naminse, E., & Zhuang, J. (2018). Economic growth, energy intensity, and carbon dioxide emissions in China. Polish Journal of Environmental Studies, 27(5). doi: 10.15244/pjoes/78619.

Nečadová, M. (2012). Is GDP an appropriate indicator of economic performance and social progress in the context of globalization? Acta Oeconomica Pragensia, 20(5).

OECD (2002). Indicators to measure decoupling of environmental pressure from economic growth. In The OECD Environment Programme. OECD.

Panayotou, T. (2016). Economic growth and the environment. In N. Haenn, R. Wilk & A. Harnish (Eds.). The environment in anthropology: a reader in ecology, culture, and sustainable living. NYU Press.

Schipper, L., & Grubb, M. (2000). On the rebound? Feedback between energy intensities and energy uses in IEA countries. Energy Policy, 28(6-7). 10.1016/ S0301-4215(00)00018-5.

Sorrell, S. (2007). The rebound effect: an assessment of the evidence for economy-wide energy savings from improved energy efficiency. UK Energy research centre.

Steger, S., & Bleischwitz, R. (2017). Decoupling GDP from resource use, resource productivity and competitiveness: a cross-country comparison. In R. Bleischwitz, P. Welfens & Z. X. Zhang (Eds). Sustainable growth and Resource productivity: economic and global policy issues. Taylor & Francis. doi: 10.4324/9781351279208-11.

Stern, D. I. (2004). The rise and fall of the environmental Kuznets Curve. World Development, 32(8). doi: 10.1016/j.worlddev.2004.03.004.

Stiglitz, J. E., Sen, A., & Fitoussi, J. (2009). Report by the Commission on the Measurement of Economic Performance and Social Progress. Retrieved form http://www.stiglitz-sen-fitoussi.fr/documents/rapport_anglais.pdf (3.11.2018).

Tapio, P. (2005). Towards a theory of decoupling: degrees of decoupling in the EU and the case of road traffic in Finland between 1970 and 2001. Transport Policy, 12(2). doi: 10.1016/j.tranpol.2005.01.001.

UN (1992). United Nations framework convention on climate change. United Nations, 1992. Retrieved form https://unfccc.int/resource/docs/convkp/ conveng.pdf (2.11.2018).

UNEP (2011). Decoupling natural resource use and environmental impacts from economic growth. Retrieved form https://wedocs.unep.org/handle/20.500. 11822/9816 (25.11.2018).

Vavrek, R., & Chovancova, J. (2016). Decoupling of greenhouse gas emissions from economic growth in V4 countries. Procedia Economics and Finance, 39. doi: 10.1016/s2212-5671(16)30295-7.

Zhou, X., Zhang, M., Zhou, M., & Zhou, M. (2017). A comparative study on decoupling relationship and influence factors between China’s regional economic development and industrial energy–related carbon emissions. Journal of Cleaner Production, 142. doi: 10.1016/j.jclepro.2016.09.115.

Published
2020-06-24
How to Cite
Chovancová, J., & Tej, J. (2020). Decoupling economic growth from greenhouse gas emissions: the case of the energy sector in V4 countries. Equilibrium. Quarterly Journal of Economics and Economic Policy, 15(2), 235-251. https://doi.org/10.24136/eq.2020.011
Section
Articles