Economic Thought and Practice, , 2026.
Original scientific paper
https://doi.org/10.17818/EMIP/2026/27
THE ENVIRONMENTAL KUZNETS CURVE FOR GREENHOUSE GAS EMISSIONS IN EUROPEAN UNION MEMBER STATES: A SECTORAL APPROACH
Lorena Škuflić
; University of Zagreb, Faculty of Economics and Business, Croatia
Maja Bašić
orcid.org/0000-0002-1842-7091
; Institute of Public Finance, Zagreb, Croatia
*
* Corresponding author.
Abstract
This paper examines the relationship between greenhouse gas emissions and per capita income in the 27 European Union member states from 1995 to 2023 using the Environmental Kuznets Curve (EKC) framework. Quadratic, cubic, and dynamic panel models are applied to aggregate and sectoral emissions in both more developed and less developed member states. The findings reveal a clear structural divide. An inverted U-shaped relationship is identified for total emissions, buildings, and fuel sectors in more developed countries, while less developed countries mainly exhibit convex and growing N-shaped emission-income patterns. Emission reductions are driven largely by time effects and public policies rather than income growth alone. Increased use of renewable energy sources and lower energy intensity also contribute to reduced emissions, highlighting the importance of technological transition in decarbonisation. More developed member states demonstrate stronger policy-driven decoupling of emissions from economic growth, while less developed states continue to record rising emissions in income-sensitive sectors.
Keywords
Environmental Kuznets Curve (EKC); GHG; CO2 emissions; GDP per capita; European Union
Hrčak ID:
347652
URI
Publication date:
9.6.2026.
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