Economic development and greenhouse gas emissions in the European Union countries

The paper analyses the environmental Kuznets curve (EKC) relationship between greenhouse gases and main aspects of economic development based on the panel data of 20 countries of the EU, including the data of three Baltic States, in the period 1995–2011. The fixed effect panel model was used as a framework for the analysis. The commonly used models confirmed the presence of the inverse U-shaped relationship. The novel contribution of this paper is that the factor referring to the global financial crisis was tested in expanded EKC model. Higher energy taxes, primary production of nuclear heat and R&D decrease the level of greenhouse gas emissions (GHG). The size of agriculture, industry and construction, as well as the primary production of solid fuels have a positive sign, which means that a higher value of these indicators is associated with a higher level of GHG. This implies that the analysed set of factors can be applied to adjust the EKC trend in the region and might be useful for the climate change policy adjustment

How Does Environmental Data from ESG Concept Affect Stock Returns: Case of the European Union and US Capital Markets

This article examines the environmental, social, and governance (ESG) performance of firms, with a focus on the environmental pillar of the ESG concept. It is believed that the price of equities as well as sector-specific characteristics may be affected by ESG data. It also contributes to the argument that environmental performance and governance quality are related. The purpose of this paper is to statistically validate the separated environmental data from the ESG concept and investigate its impact on the equity price in the EU and the United States. Using simple linear regressions and a fixed effect panel data model, the association between environmental score and governance score, as well as equity price and environmental score, was estimated. This study examines the 500 largest US corporations comprising the S&P 500 index (S&P) and the 600 largest EU companies comprising the STOXX Europe 600 index (STOXX) (SXXP). This article analyzes ESG statistics for the period 2015–2020. The results indicate that a higher government score has a favorable effect on environmental pledges and that changes in stock price depend in part on environmental data. The novel contribution of this paper is that the results suggest a sector-specific contribution to the model, and it would be fascinating to analyze sector disparities and their ESG-related policies in greater detail. Doi: 10.28991/ESJ-2023-07-02-08 Full Text: PD

Energy consumption, economic growth and greenhouse gas emissions in the European Union countries

This paper investigates the relationship between economic growth, greenhouse gas emissions and other factors based on the panel data of 22 countries of the EU in the period 1995–2014. The fixed effect panel model was used as a framework for the analysis. The novel contribution of this paper is that the factors of economic growth, energy consumption, energy taxes as well as R&D were tested in one expanded EKC model, including the data of three Baltic States. The regression coefficients referring to GDP, Energy consumption have a positive sign, while R&D and Energy taxes have a negative sign. The empirical analysis combines two steps of evaluation of panel models of different groups of countries. The results imply that the analysed factors (energy consumption, energy taxes as well as R&D) can be applied to adjust the EKC trend in the region and might be useful for the climate change policy adjustment

Testing environmental Kuznets curve hypothesis: the role of enterprise’s sustainability and other factors on GHG in European countries

The paper analyses the environmental Kuznets curve relationship between greenhouse gases and chosen indicators of economic development based on the panel data of 20 countries of the EU in the period 2006–2013. Besides the typical variables, such as the share of a particular polluting industry, environmental taxes, energy taxes, research and development, the dummy variable of the crises and enterprise’s sustainability score were also included in the model. The fixed effect panel model was used as a framework for the analysis. The original contribution of this paper is that the factor referring to the enterprises’ sustainability was empirically tested in the expanded model. Higher energy taxes, research and development and the number of sustainable enterprises decrease the level of greenhouse gases. The size of agriculture, production and construction has a positive sign, which means that a higher value of the indicator is associated with a higher level of greenhouse gases. This implies that the analysed set of factors can be applied to adjust the trend in the region and might be useful for the climate change policy adjustment

Greenhouse gases emissions and economic growth – evidence substantiating the presence of environmental Kuznets curve in the EU

The paper considers the relationship between greenhouse gas emissions (GHG) as the main variable of climate change and gross domestic product (GDP), using the environmental Kuznets curve (EKC) technique. At early stages of economic growth, EKC indicates the increase of pollution related to the growing use of resources. However, when a certain level of income per capita is reached, the trend reverses and at a higher stage of development, further economic growth leads to improvement of the environment. According to the researchers, this implies that the environmental impact indicator is an inverted U-shaped function of income per capita. In this paper, the cubic equation is used to empirically check the validity of the EKC relationship for European countries. The analysis is based on the survey of EU-27, Norway and Switzerland in the period of 1995–2010. The data is taken from the Eurostat database. To gain some insights into the environmental trends in each country, the article highlights the specific relationship in the country based on the level of its development. The similarities between individual countries are analysed in order to identify their basic common features

Sustainability Literacy and Financial Literacy of Young People in the Baltic States

CC BY 4.0The stream of scientific articles on sustainability, financial literacy, and sustainability literacy shows their importance in the transformation process. New financial instruments with sustainable or green features have been introduced in the financial market. As a result, financial literacy is becoming more complex and the need for sustainability literacy is also increasing. Financial literacy now includes not only the knowledges, attitudes, and behavior of financial well-being but also positive impacts on environmental and social development. This article presupposes financial literacy and sustainability literacy are key instruments for the sustainable development of society. The aim of this article is to analyze the scientific literature on sustainability literacy and financial literacy and investigate the level of sustainability literacy and financial literacy among young people aged 15–30 years in the Baltic states. A systematic review of the literature was carried out followed by a survey, which revealed some differences between Estonia and Latvia and Lithuania in terms of sustainability and financial literacy levels

Ar darnumo įvertinimą turinčios korporacijos turi didesnę akcijų grąžą?

This paper aims at checking corporate performance in particular regions, based on stock market indices, specifically, searching for positive relationship of stock market performance and corporate sustainability. To obtain the comparable results, the data on stock market index were taken from the Dow Jones index family (based on the Bloomberg information platform), which should ensure the uniformity of index construction, review, maintenance and calculation. Theoretically, the differences between indices can arise for several reasons: different financial results of the sustainable and non-sustainable corporations, perceived competitive future advantages of sustainable corporations over non-sustainable enterprises, and the differences in the structure of indices. This paper specifically analyses the third reason. Hypothesis about different market performance of sustainable enterprises versus non-sustainable (or sustainability-neutral) enterprises is being raised and tested. Differences of indexes integrating sustainable and sustainability neutral enterprises, caused by differences in compositions of the sectors’ and countries’ weights, are being taken into account and mathematically equalized, and insights about sustainable enterprises market performance formulated. The obtained conclusion reveals how enterprise sustainability affects financial market performance.Straipsnyje analizuojamas korporacijų veiklos efektyvumas tam tikruose regionuose, remiantis akcijų indeksų svyravimais, ypač siekiant patikrinti galimą pozityvų santykį tarp akcijų grąžos bei priklausymo darnių korporacijų indeksui. Siekiant palyginti skirtingus indeksus, remiamasi Dow Jones indeksų grupės šeima (iš Bloombergo sistemos); tai užtikrina vienodą indeksų sudarymo, keitimo ir skaičiavimo metodologiją. Teoriškai skirtumai tarp indeksų gali susidaryti dėl kelių priežasčių: skirtumai pačių indeksų struktūroje, skirtingi finansiniai rezultatai tarp darnos siekiančių ir nedarnių korporacijų, darnios korporacijos turi tam tikrą pranašumą prieš nedarnias. Straipsnyje dėmesys sutelkiamas į pirmąją priežastį, nes šalių bei sektorių svorių indekso pasiskirstymo skirtumai gali lemti visą indekso rezultatą dėl to, kad kai kurių šalių ar sektorių indeksai konkrečiu laikotarpiu yra pelningesni už kitus

Ar darnumo įvertinimą turinčios korporacijos turi didesnę akcijų grąžą?

This paper aims at checking corporate performance in particular regions, based on stock market indices, specifically, searching for positive relationship of stock market performance and corporate sustainability. To obtain the comparable results, the data on stock market index were taken from the Dow Jones index family (based on the Bloomberg information platform), which should ensure the uniformity of index construction, review, maintenance and calculation. Theoretically, the differences between indices can arise for several reasons: different financial results of the sustainable and non-sustainable corporations, perceived competitive future advantages of sustainable corporations over non-sustainable enterprises, and the differences in the structure of indices. This paper specifically analyses the third reason. Hypothesis about different market performance of sustainable enterprises versus non-sustainable (or sustainability-neutral) enterprises is being raised and tested. Differences of indexes integrating sustainable and sustainability neutral enterprises, caused by differences in compositions of the sectors' and countries' weights, are being taken into account and mathematically equalized, and insights about sustainable enterprises market performance formulated. The obtained conclusion reveals how enterprise sustainability affects financial market performance

Konkurencingumo ir darnios plėtros ryšio Europos valstybėse analizė

Taking into account the current financial crisis, the European Commission has launched the new strategy “Europe 2020,” released as the follow up to the Lisbon strategy. Both strategies encourage the European Union countries to be competitive and to maintain the sustainable development in order to prosper in the dynamic knowledge-based economy. However, a question arises, how these two concepts interrelate and help a nation to create harmonious and balanced development. This research is based on the assumption that competitiveness is a cornerstone of a country’s growth, leading to its sustainable development. The research has confirmed that the rank assigned to the competitiveness of the country’s economy is related to sustainability indicators. It should be noted that, for the developing countries, GDP growth should be maintained to improve the sustainability. However, GDP growth cannot be assured for the infinity, because when the country reaches a high level of welfare its growth rate usually decreases, though the same high level of competitiveness and sustainable development is maintained at a slower but constant rate. Various rankings do not necessarily give the full view of the economic situation.Dabartinės finansinės krizės akivaizdoje Europos Komisija priėmė naują strategiją „Europa 2020“, kuri tęsia Lisabonoje iškeltas idėjas. Abi strategijos ragina Europos valstybes didinti konkurencingumą ir užtikrinti darnų augimą. Kyla klausimas, kaip šios dvi koncepcijos yra susijusios ir padeda valstybėms sukurti harmoningą plėtrą. Tyrimas remiasi prielaida, kad konkurencingumas yra vienas svarbiausių veiksnių, užtikrinančių ekonomikos augimą ir darnią plėtrą. Tyrimas patvirtino, kad aukštas konkurencingumas susijęs su darnia plėtra. Tačiau besivystančių šalių BVP augimas turi būti darnios plėtros gerinimo prielaida. BVP augimas negali būti begalinis. Kai šalis pasiekia aukštą gerovės lygį, jos augimo tempai sulėtėja, bet tas pats aukštas konkurencingumo lygis ir darni plėtra palaikoma ir esant mažesniam augimo tempui. Atliekant tyrimą pastebėta, kad įvairūs vertinimai nebūtinai atspindi konkrečios šalies tikrąją ekonominę padėtį

The analysis of the relationship between the sustainable development and competitiveness in the European countries

Taking into account the current financial crisis, the European Commission has launched the new strategy “Europe 2020,” released as the follow up to the Lisbon strategy. Both strategies encourage the European Union countries to be competitive and to maintain the sustainable development in order to prosper in the dynamic knowledge-based economy. However, a question arises, how these two concepts interrelate and help a nation to create harmonious and balanced development. This research is based on the assumption that competitiveness is a cornerstone of a country’s growth, leading to its sustainable development. The research has confirmed that the rank assigned to the competitiveness of the country’s economy is related to sustainability indicators. It should be noted that, for the developing countries, GDP growth should be maintained to improve the sustainability. However, GDP growth cannot be assured for the infinity, because when the country reaches a high level of welfare its growth rate usually decreases, though the same high level of competitiveness and sustainable development is maintained at a slower but constant rate. Various rankings do not necessarily give the full view of the economic situation