The Relationship Between Economic Growth and CO2 Emissions in EU Countries: A Cointegration Analysis

This paper explores the dynamics of relationship between economic growth and CO 2 emissions in 27 EU member states a panel setting for period 2000–2017. We use qualitative sequential methodology, involving empiric analysis that provides coherence viability our study, but also quantitative methods, including Dynamic Ordinary Least Squares (DOLS), unit root tests cointegration techniques. The results suggest existence long run cointegrating countries DOLS method indicates statistically significant effect on both versions estimators, revealing average, 1% change GDP leads to 0.072 emissions. study exhibits higher income levels lead increased demand environmental protection underline need designing policies, capable reduce during periods growth. Moreover, we find status does not automatically diminish climate vulnerability countries, only correct type does, thus being necessary policymakers be aware energy cost pressure achieve with appropriate tools terms risk management.