Analysing Transportation-Induced Economic Growth, Energy Use, and CO2 Emissions

Abstract

This chapter concentrates on the linkage among transportation, energy usage, GDP, and Co2 emissions in EU countries during the period 1970-2014 by analysing the EKC hypothesis. The data is derived from the World Bank's official website to point out environmental consciousness of EU countries by implementing panel data analysis. In this sense, the findings indicate that environmental consciousness is quite low for EU countries from 1970 to 1997. Besides, the environmental issues of EU countries are taken into account from 1997 to 2014. The findings of research demonstrate that their sensitiveness has risen significantly, which is consistent with the inverse-U shape of the EKC hypothesis from 1997 to 2014. Thus, these empirical results support the Kyoto protocol's political aims and goals. Furthermore, Johansen co-integration test is implemented to reveal the long-term linkage among economic growth, air transportation, carbon emissions, and energy usage.