Pollution and electricity price in the EU Central and Eastern European countries: a sectoral approach

Abstract

Pollution and energy crisis are actual issues in Europe, including the EU Central and Eastern European states. In this context, the objective of this paper is to assess the impact of economic growth and electricity prices for non-household consumers on pollution. The empirical findings reveal the U pattern for energy industry and inverted U pattern for manufacturing in the period 2007-2021 in the EU countries from Central and Eastern Europe. Renewable energy consumption reduces the CO2 and GHG emissions in energy industry. FDI and electricity prices determine the reduction in GHG and CO2 emissions in both sectors. These results are the basis for policy recommendations.

Keywords: CO2 emissions; Electricity price; GHG emissions; Pollution.