Abstract
Energy as one of the factors contributing to environmental degradation, as found in literature, provides a necessary input for economic growth in most countries. This study investigates relationships of energy consumption and economic growth to environmental degradation for a panel of 25 selected European (EU) countries from 2000 to 2019. Carbon dioxide (CO2) emission, gross domestic product (GDP) and energy consumption are used as proxies in the analysis. Besides ordinary least square regression (OLS), we employ a spatial model to measure the spatial dependence effect in the region. The Lagrange Multiplier (LM) test shows that the Spatial Durbin Model (SDM) is most appropriate for modeling the relationship. The estimated results indicate that there is a spatial effect among the variables. Thus, this study provides a better understanding of the inter-relationship among the variables in developed countries like the EU to attain sustainable development.
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Acknowledgement
This work is supported by the Research University Grant (1001/PMATHS/8016115), Universiti Sains Malaysia.
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Nordin, S.K.S., Sek, S.K. (2022). Do Energy and Economic Growth Contribute to Environmental Degradation? Empirical Evidence From Selected European Countries. In: Yilmaz, F., Queiruga-Dios, A., Santos Sánchez, M.J., Rasteiro, D., Gayoso MartÃnez, V., MartÃn Vaquero, J. (eds) Mathematical Methods for Engineering Applications. ICMASE 2021. Springer Proceedings in Mathematics & Statistics, vol 384. Springer, Cham. https://doi.org/10.1007/978-3-030-96401-6_13
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