Exploring the Nexus Between Expenditure in Environmental Protection and Green gpd in the EU

Abstract

Amidst profound environmental changes and ecological uncertainty, concerns arise that the sole pursuit of economic growth alongside unsustainable patterns of production, rapid urbanization, consumer-driven behaviour, and associated lifestyle requirements may upset the delicate ecological capacity, economic stability, and socio-economic security. Embracing green growth has emerged as a strategic approach aimed at increasing the use of renewable energy sources, lowering carbon emissions, investing in R&D for green technologies and sustainable practices and etc., hence is widely acknowledged as a viable remedy to steer an economic system that aspires to improve human well-being and social equity while significantly reducing environmental risks and ecological scarcities. This study delves into the intricate interconnection between investment in environmental protection efforts and the resulting impact on a nation's Green GDP. With an increasing global emphasis on green growth and development, understanding the relationship between environmental expenditure and sustainable economic growth has gained paramount significance. The research adopts a time-series cross-sectional methodology, employing a panel cointegration analysis covering a diverse set of EU countries.