Examining the Influence of Urbanization and Low-Carbon Energy Sources on CO2 Emissions in EU Countries: A Panel Data Analysis

Research background: The study focuses on examining the influence of urbanization and low-carbon energy sources on CO2 emissions in EU countries through panel data analysis. It aims to contribute to the understanding of the relationships between carbon emissions, urbanization, economic growth, energy consumption, and the use of renewable and nuclear energy sources. Purpose of the article: The research aims to address three key questions: (1) Are there short-term and long-term relationships among the variables of interest? (2) How do carbon emissions relate to the independent variables during different time periods? (3) Can urbanization, economic development, energy consumption, and the proportion of renewable/low-carbon energy sources influence carbon emissions and contribute to achieving carbon neutrality targets? Methods: The study employs various econometric models, including panel models Mean Group Estimation (MG), Pooled Mean Group Estimation (PMG) and Common correlated Effects Model (CCE) to analyze data from 22 EU countries spanning the period from 1992 to 2019. These models facilitate the examination of the relationships between the variables of interest. Findings & Value added: The findings of the study provide valuable insights into the short-term and long-term relationships among carbon emissions, urbanization, economic growth, energy consumption, and the use of renewable and nuclear energy sources. The research highlights the dynamics of carbon emissions and their interactions with independent variables over different time periods. Additionally, it sheds light on the potential influence of urbanization, economic development, energy consumption, and the proportion of renewable/low-carbon energy sources on carbon emissions and their relevance to achieving carbon neutrality targets. The research findings contribute to the existing knowledge by offering valuable insights for decision-makers and policymakers. They can inform the formulation of new or revised policies aimed at fostering a carbon-neutral and environmentally sustainable economy at both the EU and national levels.