Is Younger Population Generating Higher CO2 Emissions? A Dynamic Panel Analysis on European Countries

Abstract

Ensuring a balance between economic growth and environmental sustainability is crucial to reduce the impact of CO2 emissions and ensure sustainable economic development for future generations. The goal of this study is to investigate the influences of the adjusted gross dispensable income (GDI) per capita, the gross domestic product (GDP) per capita, energy consumption per capita, economic inequality in the population (GINI), and the median age on the carbon emissions in 27 European countries. In the dynamic panel analysis, CO2 emissions represent the dependent variable, while adjusted GDI/capita, GDP/capita, energy use/capita, median age, and GINI are the independent variables. The valid results of the model show us that only the past values of CO2 emissions, GDP/capita, and median age significantly influence the carbon emissions in the European countries analyzed. The median age and the GDP/capita have inversely proportional impacts on the carbon emissions in Europe. A 1% increase in GDP/capita produced a 0.006% decrease in carbon emissions in Europe. The younger the population is, the higher the carbon emissions. In contrast, the adjusted gross disposable income/capita, the energy consumption/capita, and economic inequality do not significantly influence CO2 emissions/capita in the European countries and period analyzed.