Spatial Econometric Analysis of Carbon Dioxide Emission – European Case Study

Abstract

The level of greenhouse gas emissions is one of the most important issues today, both professionally and politically, because a lower level of greenhouse gas emission is mandatory for a sustainable economy. Besides industry and households, the transport sector is also responsible for these emissions. For this reason, it may be essential to set up a model with which the amount of CO2 emissions could be estimated or predicted. This article presents a model that examines the extent of economic development and CO2 emissions in European countries. The result is establishing a pattern requiring a longer time series. If the pattern is proven, a clear reassessment of the current relationship between economic development and environmental protection should be made.