Assessing the long-term asymmetric relationship between energy consumption and CO2 emissions: Evidence from the Visegrad Group countries
Assessing the long-term asymmetric relationship between energy consumption and CO2 emissions: Evidence from the Visegrad Group countries

Summary/Abstract: This study investigates the impact of renewable (REW) andnon-renewable (NREW) energy usage, along with econom-ic growth (GDP), on carbon dioxide (CO2) emissions in theVisegrad countries, which rely heavily on traditional energysources. Using data from 1991 to 2021, the analysis employsa panel asymmetric regression with Driscoll-Kraay and FGLSstandard errors. The latent cointegration test reveals long-term relationships with asymmetry among the variables.Real GDP fluctuations exhibit a negative impact on CO2emissions for both positive and negative shocks. A reduc-tion in conventional energy source consumption leads toa greater CO2 emission reduction, confirming asymmetry.Conversely, an increase in consumption positively impactsCO2 reduction. However, non-conventional energy sourcesshow no asymmetries. The OLS-based model proposed byDriscoll-Kraay showed reduced standard errors, but lowersignificance in the estimated parameters compared to theFGLS model. The findings recommend a sustainable energytransition for Visegrad countries by eliminating traditionalsources and promoting renewable resources.

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