Russia holds the position of being the third largest global producer of oil and plays a significant role in the supply of oil and gas to Europe. The ongoing war conflict has the potential to impede the bilateral and multilateral relations between Russia and Europe. The ramifications of this event will have notable reverberations for environmental endeavors in Europe. The aforementioned premise forms the basis of our investigation, wherein we scrutinize the correlation among oil price, coal price, gas price, economic growth, and coal consumption, while taking into account the ramifications of the Russian-Ukrainian conflict. We adopted fully "modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS), and canonical cointegration regression (CCR)" econometric techniques to gauge the nexus between factors of interest in the top 4 European Russian gas importer economies (Poland, Netherland, Hungry, and Germany). The empirical outcomes reveal substantial negative impact of economic growth and coal price elasticity on the coal consumption. On the contrary, oil and gas price elasticities depict significant positive influence on the coal consumption. Hence, this study concludes that a rise in oil and gas prices leads to an increase in coal consumption, which in turn negatively impacts environmental quality. Furthermore, the occurrence of war has the potential to impede the utilization of coal resources in Netherlands and Hungary. On the other hand, the impact of war is noteworthy and constructive in Poland and Germany. Thus, war results ecological imbalance in Poland and Germany in particular. Governments, decision-makers, stakeholders, and environmentalists must develop a long-term plan that calls for a paradigm shift away from gas, oil, and coal usage and toward more environmentally benign renewable energy sources.
Keywords: Coal, gas, oil prices; Environmental balance; FMOLS, DOLS, CCR; Russia-Ukraine war; Sustainable development goals.
© 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.