How the Use of Biomass for Green Energy and Waste Incineration Practice Will Affect GDP Growth in the Less Developed Countries of the EU (A Case Study with Visegrad and Balkan Countries)

Abstract

Combustible renewable energy can be an effective instrument to confirm sustainable development in reducing CO2 emissions to Gross Domestic Product (GDP) per capita in developing countries. However, connecting to some developing regions, the main research question is to what extent, in EU post-communist fast-developing countries (Visegrad Countries/Czech Republic, Slovakia, Hungary, Poland), will meeting the climate change preferences affect the use of biomass for energy and waste incineration, and how will this affect GDP growth? In addition, of course, what the Balkan countries can learn from this is also very important. The study investigates the relationship between GDP per capita, CO2 emissions, and Combustible Energy and Waste Consumption (CEWC). According to the Hausman test, the regression model along with random effect is the appropriate method for panel-balanced data as of 2008 to 2020 concerning Balkan countries. The data was divided into three categories: 10 Balkan countries, 4 countries without access to the sea (Kosovo, Bosnia and Herzegovina, Serbia, and Macedonia), and Visegrad countries. The study discovered a substantial positive influence of CEWC on GDP per capita and a significant negative influence of CO2 emissions. The cointegration test confirms the cointegration of all three variables. This means that all three variables have a long-term relationship concerning the sense of each three forms of the chosen panel. The Granger causality findings shows the variables have a two-way causative relationship. The biomass energy use can dramatically hamper GDP growth in Visegrad and less developed Balkan countries without sea water, due to low energy productivity and a lack of technical innovation. The study recommended that instead of using energy production from simple biomass, these countries can use other circular, platform-based models to prevent unexpected rises in CO2 emissions and achieve Green House Gas (GHG) reductions. Therefore, this should be given more attention when setting climate and renewable energy policy targets, because they can significantly slow down economic growth.