This chapter provides a concise presentation of the latest data of the selected sustainable development indicators for the European Union by focusing on Human Development Index, Sustainable Development Index, Planetary Pressure Adjusted Human Development Index, Inclusive Development Index, and Happy Planet Index. The second part of the chapter is devoted to the empirical analysis of determinants of sustainable development, renewable energy consumption, and environmental pollution. A system of three simultaneous equations is estimated in the panel data set of 28 EU member states in the time period ranging from 2008 to 2019. Panel with fixed effects and two-stage least-squares method is conducted. Most of the estimated coefficients turned out to be highly statistically significant and of a predicted sign. Capital formation, size of population, average years of schooling, and renewable energy usage have a positive impact on economic development measured by HDI. Human capital measured by share of adults with tertiary education, HDI, and energy import dependence positively influence renewable energy consumption. CO2 emissions are positively related to total energy consumption and HDI, while they are negatively affected by renewable energy consumption and human capital in form of highly educated adults. The third equation measuring the determinants of CO2 emissions allowed us to find evidence for the environmental Kuznets curve resulting in the HDI of 0.942 as the turning point when the increased development decreases pollution.

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Indicators and Determinants of Sustainable Development in EU: An Application of Simultaneous Equation System

  • Darja Boršič,
  • Lea Žižek

摘要

This chapter provides a concise presentation of the latest data of the selected sustainable development indicators for the European Union by focusing on Human Development Index, Sustainable Development Index, Planetary Pressure Adjusted Human Development Index, Inclusive Development Index, and Happy Planet Index. The second part of the chapter is devoted to the empirical analysis of determinants of sustainable development, renewable energy consumption, and environmental pollution. A system of three simultaneous equations is estimated in the panel data set of 28 EU member states in the time period ranging from 2008 to 2019. Panel with fixed effects and two-stage least-squares method is conducted. Most of the estimated coefficients turned out to be highly statistically significant and of a predicted sign. Capital formation, size of population, average years of schooling, and renewable energy usage have a positive impact on economic development measured by HDI. Human capital measured by share of adults with tertiary education, HDI, and energy import dependence positively influence renewable energy consumption. CO2 emissions are positively related to total energy consumption and HDI, while they are negatively affected by renewable energy consumption and human capital in form of highly educated adults. The third equation measuring the determinants of CO2 emissions allowed us to find evidence for the environmental Kuznets curve resulting in the HDI of 0.942 as the turning point when the increased development decreases pollution.