Sustainable Economic Development and Greenhouse Gas Emissions: The Dynamic Impact of Renewable Energy Consumption, GDP, and Corruption

TLDR

GDP growth, greenhouse gas emissions, renewable energy consumption, and corruption represent the economic, environmental, and social dimensions of sustainable development. The study investigates the relationships among the economic, social, and environmental dimensions of sustainable development. The authors analyzed panel data from EU countries and Ukraine (2000–2016) using the Environmental Kuznets Curve hypothesis. Results confirm the Environmental Kuznets Curve for the EU and Ukraine, showing that a 1% rise in renewable energy reduces GHG by 0.166–0.221 units and a 1% improvement in corruption control cuts GHG by 0.88%, with all indicators significant at 1% and 5% levels, implying Ukraine should raise per‑capita GDP through diversification and cleaner technologies.

Abstract

The paper investigates the relationships between economic, social, and environmental dimensions of sustainable development. GDP growth represents the main economic dimension, greenhouse gas (GHG) emissions and renewable energy consumption the environmental dimension, and corruption the social dimension of sustainable development. The investigation of these relationships is based on the concept of the Environmental Kuznets Curve hypothesis about the non-linear relationship between economic growth and environmental pollution. The authors used the panel data of EU countries and Ukraine for 2000–2016 years from the Eurostat database. The obtained results confirmed the Environmental Kuznets curve hypothesis for the EU and Ukraine. All the indicators were statistically significant at 1% and 5% levels. The findings proved that increasing renewable energy (RE) by 1% led to a decline of GHG in the interval (0.166103, 0.220551), and аn increase of the Control of Corruption Index by 1% provoked a decline of GHG by 0.88%. The conducted study enabled the authors to conclude that Ukraine needs to increase the GDP level per capita given the economy diversification and via the introduction of more effective and “clean” production technologies.