EU climate countdown: economic risks, adaptation and smart policies
Purpose – This paper aims to analyse the impact of various climate change indicators on economic growth while further scrutinising the overall efficiency of environmental policies adopted at the European Union (EU) level. The paper considers the European Green Deal policy framework as a prism for as...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2024-12-01
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| Series: | International Journal of Climate Change Strategies and Management |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/IJCCSM-07-2024-0121/full/pdf |
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| _version_ | 1832542428016410624 |
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| author | Ana-Elena Varadi Oana-Ramona Lobont Sorana Vatavu |
| author_facet | Ana-Elena Varadi Oana-Ramona Lobont Sorana Vatavu |
| author_sort | Ana-Elena Varadi |
| collection | DOAJ |
| description | Purpose – This paper aims to analyse the impact of various climate change indicators on economic growth while further scrutinising the overall efficiency of environmental policies adopted at the European Union (EU) level. The paper considers the European Green Deal policy framework as a prism for assessing whether an increase in environmental expenditure mitigates climate change. Design/methodology/approach – Given the duality of the study, this paper examines the immediate impact of climate change on economic growth by using multiple linear regression and evaluates the effectiveness of environmental policies through a multiple indicators multiple cause (MIMIC) Model. As the paper assesses the policy efficiency in EU countries, this paper has used various climate and economic-related indicators from all 27 EU member states for a period of 12 years (2010–2021). Findings – The results suggest that the macroeconomic environment is indeed impacted by climate change mechanisms, particularly through industrial activity that leads to pollution and resource depletion. Furthermore, through the MIMIC model approach, the results display that environmental expenditures have also diminished the risks associated with climate change indicators, especially in reducing greenhouse gas emissions. Originality/value – This paper provides a clear overview of the manner in which climate change risks affect economic growth and, in turn, how EU countries are mitigating such risks. It proposes a traditional yet controversial method for assessing the correlation between indicators and corresponding causes whilst also considering various indicators to explain the means through which the EU Commission had applied its adopted environmental policies to mitigate environmental risks. |
| format | Article |
| id | doaj-art-24292b3a926140a3bcfdac01f8dcc335 |
| institution | Kabale University |
| issn | 1756-8692 1756-8706 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | International Journal of Climate Change Strategies and Management |
| spelling | doaj-art-24292b3a926140a3bcfdac01f8dcc3352025-02-04T04:57:17ZengEmerald PublishingInternational Journal of Climate Change Strategies and Management1756-86921756-87062024-12-0117135337510.1108/IJCCSM-07-2024-0121EU climate countdown: economic risks, adaptation and smart policiesAna-Elena Varadi0Oana-Ramona Lobont1Sorana Vatavu2Doctoral School of Economics and Business Administration, West University of Timisoara, Timisoara, RomaniaDepartment of Finance, Business Information Systems and Modelling Department, Faculty of Economics and Business Administration, West University of Timisoara, Timisoara, RomaniaDepartment of Finance, Business Information Systems and Modelling Department, Faculty of Economics and Business Administration, West University of Timisoara, Timisoara, RomaniaPurpose – This paper aims to analyse the impact of various climate change indicators on economic growth while further scrutinising the overall efficiency of environmental policies adopted at the European Union (EU) level. The paper considers the European Green Deal policy framework as a prism for assessing whether an increase in environmental expenditure mitigates climate change. Design/methodology/approach – Given the duality of the study, this paper examines the immediate impact of climate change on economic growth by using multiple linear regression and evaluates the effectiveness of environmental policies through a multiple indicators multiple cause (MIMIC) Model. As the paper assesses the policy efficiency in EU countries, this paper has used various climate and economic-related indicators from all 27 EU member states for a period of 12 years (2010–2021). Findings – The results suggest that the macroeconomic environment is indeed impacted by climate change mechanisms, particularly through industrial activity that leads to pollution and resource depletion. Furthermore, through the MIMIC model approach, the results display that environmental expenditures have also diminished the risks associated with climate change indicators, especially in reducing greenhouse gas emissions. Originality/value – This paper provides a clear overview of the manner in which climate change risks affect economic growth and, in turn, how EU countries are mitigating such risks. It proposes a traditional yet controversial method for assessing the correlation between indicators and corresponding causes whilst also considering various indicators to explain the means through which the EU Commission had applied its adopted environmental policies to mitigate environmental risks.https://www.emerald.com/insight/content/doi/10.1108/IJCCSM-07-2024-0121/full/pdfClimate changeMacroeconomyEuropean UnionMIMIC modelEnvironmental expenditure |
| spellingShingle | Ana-Elena Varadi Oana-Ramona Lobont Sorana Vatavu EU climate countdown: economic risks, adaptation and smart policies International Journal of Climate Change Strategies and Management Climate change Macroeconomy European Union MIMIC model Environmental expenditure |
| title | EU climate countdown: economic risks, adaptation and smart policies |
| title_full | EU climate countdown: economic risks, adaptation and smart policies |
| title_fullStr | EU climate countdown: economic risks, adaptation and smart policies |
| title_full_unstemmed | EU climate countdown: economic risks, adaptation and smart policies |
| title_short | EU climate countdown: economic risks, adaptation and smart policies |
| title_sort | eu climate countdown economic risks adaptation and smart policies |
| topic | Climate change Macroeconomy European Union MIMIC model Environmental expenditure |
| url | https://www.emerald.com/insight/content/doi/10.1108/IJCCSM-07-2024-0121/full/pdf |
| work_keys_str_mv | AT anaelenavaradi euclimatecountdowneconomicrisksadaptationandsmartpolicies AT oanaramonalobont euclimatecountdowneconomicrisksadaptationandsmartpolicies AT soranavatavu euclimatecountdowneconomicrisksadaptationandsmartpolicies |