Advertisement

Economic and Environmental Performance of Post-Communist Transition Economies

  • Lina SinevicieneEmail author
  • Oleksandra V. Kubatko
  • Iryna M. Sotnyk
  • Ausrine Lakstutiene
Conference paper
Part of the Eurasian Studies in Business and Economics book series (EBES, volume 11/1)

Abstract

This paper presents the results of the empirical study for determining the factors affecting the environmental and economic per capita performance of national economies in the case of 15 post-Soviet republics over the period 1995–2013. The study shows that the growth of GDP per capita stimulates CO2 efficiency of all countries. Other significant factors of CO2 efficiency are energy efficiency, the increase of oil prices, the gross fixed capital formation and processes of small and large privatization. However, a multi-directional effect of some individual factors is established. Energy efficiency improvements are related to the growth of CO2 efficiency. Oil prices and small-scale privatization also positively affect CO2 efficiency, while large-scale privatization and the increase of gross fixed capital reduce the carbon efficiency. It was found that the growth of oil prices positively affects GDP per capita as well as carbon efficiency, while large-scale privatization has a negative impact on both indicators. The increase of gross fixed capital has a multi-directional influence on environmental and economic performance leading to per capita GDP growth and reduction of CO2 efficiency.

Keywords

Economic and environmental performance Post-communist transition economies Econometric model Carbon efficiency GDP per capita 

Notes

Acknowledgement

This research was funded by a grant (No. TAP LU-4-2016) from the Research Council of Lithuania.

References

  1. Acemoglu, D., & Johnson, S. (2006). Disease and development: The effect of life expectancy on economic growth (Working Paper No. 12269). National Bureau of Economic Research [online]. Retrieved February 16, 2018, from http://www.nber.org/papers/w12269
  2. Alshehry, A. S., & Belloumi, M. (2015). Energy consumption, carbon dioxide emissions and economic growth: The case of Saudi Arabia. Renewable and Sustainable Energy Reviews, 41, 237–247.CrossRefGoogle Scholar
  3. Apergis, N., & Danuletiu, D. C. (2014). Renewable energy and economic growth: Evidence from the sign of panel long-run causality. International Journal of Energy Economics and Policy, 4(4), 578–587.Google Scholar
  4. Arouri, M. H., Ben Youssef, A., M’Henni, H., & Rault, C. (2012). Energy consumption, economic growth and CO2 emissions in Middle East and North African countries. Energy Policy, 45, 342–349.CrossRefGoogle Scholar
  5. Barnett, S. (2000). Evidence on the fiscal and macroeconomic impact of privatization (IMF Working Paper WP/00/130) [online]. Retrieved February 16, 2018, from https://www.imf.org/external/pubs/ft/wp/2000/wp00130.pdf
  6. Bayraktutan, Y., Yılgör, M., & Uçak, S. (2011). Renewable electricity generation and economic growth: Panel data analysis for OECD members. International Research Journal of Finance and Economics, 66, 59–67.Google Scholar
  7. Bell, C., & Rousseau, P. L. (2001). Post-independence India: A case of finance-led industrialization? Journal of Development Economics, 65(1), 153–175.CrossRefGoogle Scholar
  8. Bloch, H., Rafiq, S., & Salim, R. (2015). Economic growth with coal, oil and renewable energy consumption in China: Prospects for fuel substitution. Economic Modelling, 44, 104–115.CrossRefGoogle Scholar
  9. Brunnschweiler, C. N. (2009). Oil and growth in transition countries. Zürich: CER-ETH Center of Economic Research at ETH Zurich and OxCarre, University of Oxford.CrossRefGoogle Scholar
  10. Carvalho, A. (2016). Energy efficiency in transition economies: A stochastic frontier approach (CEERP Working Paper No. 4).Google Scholar
  11. Cervellati, M., & Sunde, U. (2009). Life expectancy and economic growth: The role of the demographic transition (IZA Discussion Paper No. 4160). The Institute for the Study of Labor.Google Scholar
  12. Chiu, Y. (2017). Carbon dioxide, income and energy: Evidence from a non-linear model. Energy Economics, 61, 279–288.CrossRefGoogle Scholar
  13. Chontanawat, J., Hunt, L. C., & Pierse, R. (2008). Does energy consumption cause economic growth? Evidence from a systematic study of over 100 countries. Journal of Policy Modeling, 30(2), 209–220.CrossRefGoogle Scholar
  14. Cook, P., & Uchida, Y. (2003). Privatization and economic growth in developing countries. The Journal of Development Studies, 39(6), 121–154.CrossRefGoogle Scholar
  15. Cornillie, J., & Fankhauser, S. (2004). The energy intensity of transition countries. Energy Economics, 26(3), 283–295.CrossRefGoogle Scholar
  16. Cuadros, A., Orts, V., & Alguacil, M. (2004). Openness and growth: Re-examining foreign direct investment, trade and output linkages in Latin America. Journal of Development Studies, 40(4), 167–192.CrossRefGoogle Scholar
  17. Esseghir, A., & Khouni, L. H. (2014). Economic growth, energy consumption and sustainable development: The case of the Union for the Mediterranean countries. Energy, 71, 218–225.CrossRefGoogle Scholar
  18. European Bank for Reconstruction and Development. (2017). Transition indicators [online]. Retrieved November 18, 2017, from http://www.ebrd.com/what-we-do/economic-research-and-data/data.html
  19. Filipovic, A. (2006). Impact of privatization on economic growth. Undergraduate Economic Review, 2(1), 7 [online]. Retrieved February 16, 2018, from http://digitalcommons.iwu.edu/uer/vol2/iss1/7
  20. Ftiti, Z., Guesmi, K., Teulon, F., & Chouachi, S. (2016). Relationship between crude oil prices and economic growth in selected OPEC countries. The Journal of Applied Business Research, 32(1), 11–22.CrossRefGoogle Scholar
  21. Gao, C., Liu, Y., Wei, T., Zhang, J., & Zhu, L. (2016). Driving forces in energy-related carbon dioxide emissions in east and south coastal China: Commonality and variations. Journal of Cleaner Production, 135, 240–250.CrossRefGoogle Scholar
  22. Ghosh, S., & Kanjilal, K. (2014). Long-term equilibrium relationship between urbanization, energy consumption and economic activity: Empirical evidence from India. Energy, 66, 324–331.CrossRefGoogle Scholar
  23. Gronwald, M., Mayr, J., & Orazbayev, S. (2009). Estimating the effects of oil price shocks on the Kazakh economy (Ifo Working Paper No. 81). Ifo Institute for Economic Research at the University of Munich.Google Scholar
  24. Hamm, P., King, L. P., & Stuckler, D. (2012). Mass privatization, state capacity, and economic growth in post-communist countries. American Sociological Review, 77(2), 295–324.CrossRefGoogle Scholar
  25. Hammond, G. P., & Norman, J. B. (2012). Decomposition analysis of energy-related carbon emissions from UK manufacturing. Energy, 41, 220–227.CrossRefGoogle Scholar
  26. Hausman, J. A. (1978). Specification tests in econometrics. Econometrica, 46(6), 1251–1271.CrossRefGoogle Scholar
  27. Hwang, Y. H., & Yoo, S. H. (2014). Energy consumption, CO2 emissions, and economic growth: Evidence from Indonesia. Quality & Quantity, 48(1), 63–73.CrossRefGoogle Scholar
  28. Idrisov, G., Kazakova, M., & Polbin, A. (2015). A theoretical interpretation of the oil prices impact on economic growth in contemporary Russia. Russian Journal of Economics, 1(3), 257–272.CrossRefGoogle Scholar
  29. Jalil, A., & Feridun, M. (2011). The impact of growth, energy and financial development on the environment in China: A cointegration analysis. Energy Economics, 33(2), 284–291.CrossRefGoogle Scholar
  30. Kasman, A., & Duman, Y. S. (2015). CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: A panel data analysis. Economic Modelling, 44, 97–103.CrossRefGoogle Scholar
  31. Katsoulakos, Y., & Likoyanni, E. (2002). Fiscal and other macroeconomic effects of privatization. Nota di Lavoro, Fondazione Eni Enrico Mattei, No. 113.2002 [online]. Retrieved February 16, 2018, from https://www.econstor.eu/bitstream/10419/119721/1/NDL2002-113.pdf
  32. Kazar, G., & Kazar, A. (2014). The renewable energy production-economic development nexus. International Journal of Energy Economics and Policy, 4(2), 312–319.Google Scholar
  33. Kurbatova, T., & Khlyap, H. (2015). GHG emissions and economic measures for low carbon growth in Ukraine. Carbon Management, 6(1–2), 7–17.CrossRefGoogle Scholar
  34. Lee, C., & Chien, M. (2010). Dynamic modelling of energy consumption, capital stock, and real income in G-7 countries. Energy Economics, 32(3), 564–581.CrossRefGoogle Scholar
  35. Lescaroux, F., & Mignon, V. (2008). On the influence of oil prices on economic activity and other macroeconomic and financial variables (CEPII, Working Paper No. 2008–05).Google Scholar
  36. Lin, B., & Moubarak, M. (2014). Renewable energy consumption – Economic growth nexus for China. Renewable and Sustainable Energy Reviews, 40, 111–117.CrossRefGoogle Scholar
  37. Liobikiene, G., Butkus, M., & Bernatiniene, J. (2016). Drivers of greenhouse gas emissions in the Baltic states: Decomposition analysis related to the implementation of Europe 2020 strategy. Renewable and Sustainable Energy Reviews, 54, 309–317.CrossRefGoogle Scholar
  38. Mao, Z., Zhang, S., & Li, X. (2017). Low carbon supply chain firm integration and firm performance in China. Journal of Cleaner Production, 153, 354–361.CrossRefGoogle Scholar
  39. Melnyk, L. G., Shkarupa, E. V., & Kharchenko, M. O. (2013). Innovative strategies to increase economic efficiency of greening the economy. Middle-East Journal of Scientific Research, 16, 30–37.Google Scholar
  40. Menegaki, A. N. (2011). Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis. Energy Economics, 33(2), 257–263.CrossRefGoogle Scholar
  41. Narayan, P. K., & Smyth, R. (2008). Energy consumption and real GDP in G7 countries, new evidence from panel cointegration with structural breaks. Energy Economics, 30(5), 2331–2341.CrossRefGoogle Scholar
  42. Neitzel, D. (2017). Examining renewable energy and economic growth: Evidence from 22 OECD countries. Honors Program Theses, 46 [online]. Retrieved February 16, 2018, from http://scholarship.rollins.edu/honors/46
  43. Nepal, R., Jamasb, T., & Tisdell, C. A. (2014). Market-related reforms and increased energy efficiency in transition countries: Empirical evidence. Applied Economics, 46(33), 4125–4136.CrossRefGoogle Scholar
  44. Noor, S., & Siddiqi, M. W. (2010). Energy consumption and economic growth in South Asian countries: A co-integrated panel analysis. International Journal of Energy and Power Engineering, 4(7), 1731–1736.Google Scholar
  45. Olumuyiwa, O. S. (2012). Longrun relationship between energy consumption and economic growth: Evidence from Nigeria. IOSR Journal of Humanities and Social Science, 3(3), 40–51.CrossRefGoogle Scholar
  46. Ozcan, B. (2013). The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis. Energy Policy, 62, 1138–1147.CrossRefGoogle Scholar
  47. Ozturk, I., & Acaravci, A. (2010). CO2 emissions, energy consumption and economic growth in Turkey. Renewable and Sustainable Energy Reviews, 14, 3220–3225.CrossRefGoogle Scholar
  48. Ozturk, I., & Acaravci, A. (2013). The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey. Energy Economics, 36, 262–267.CrossRefGoogle Scholar
  49. Ratti, R. A., & Vespignani, J. L. (2016). Oil prices and global factor macroeconomic variables. Energy Economics, 59, 198–212.CrossRefGoogle Scholar
  50. Ren, S., & Hu, Z. (2012). Effects of decoupling of carbon dioxide emission by Chinese nonferrous metals industry. Energy Policy, 43, 407–414.CrossRefGoogle Scholar
  51. Saidi, K., & Hammami, S. (2015). The impact of energy consumption and CO2 emissions on economic growth: Fresh evidence from dynamic simultaneous-equations models. Sustainable Cities and Society, 14, 178–186.CrossRefGoogle Scholar
  52. Shahbaz, M., Hye, Q. M. A., Tiwari, A. K., & Leitão, N. C. (2013). Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia. Renewable and Sustainable Energy Reviews, 40, 109–121.CrossRefGoogle Scholar
  53. Shahbaz, M., Khan, S., & Tahir, M. I. (2013). The dynamic links between energy consumption, economic growth, financial development and trade in China: Fresh evidence from multivariate framework analysis. Energy Economics, 40, 8–21.CrossRefGoogle Scholar
  54. Shahraki, J. (2011). The investigation of relationship between privatization and economic growth in Iran. International Journal of Business, Humanities and Technology, 1(2), 167–174.Google Scholar
  55. Shukurov, S., Maitah, M., & Smutka, L. (2016). The impact of privatization on economic growth: The case of Uzbekistan. International Journal of Economics and Financial Issues, 6(3), 948–957.Google Scholar
  56. Soile, I. O. (2012). Energy-economy nexus in Indonesia: A bivariate cointegration analysis. Asian Journal of Empirical Research, 2(6), 205–218.Google Scholar
  57. Sunde, U., & Cervellati, M. (2012). Diseases and development: Does life expectancy increase income growth? [online]. Retrieved February 16, 2018, from https://voxeu.org/article/disease-and-development-does-living-longer-raise-economic-growth
  58. The World Bank. (2017). World development indicators database [online]. Retrieved November 5, 2017, from http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators
  59. Tugcu, C. T., Ozturk, I., & Aslan, A. (2012). Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries. Energy Economics, 34(6), 1942–1950.CrossRefGoogle Scholar
  60. Turan, B. (2009). Life expectancy and economic development: Evidence from micro data. University of Houston [online]. Retrieved October 15, 2017, from http://www.uh.edu/~bkturan/lifeexpec.pdf
  61. Wang, Z., He, W., & Chen, K. (2016). The integrated efficiency of economic development and CO2 emissions among Asia Pacific Economic Cooperation members. Journal of Cleaner Production, 131, 765–772.CrossRefGoogle Scholar
  62. Wang, S. S., Zhou, D. Q., Zhou, P., & Wang, Q. W. (2011). CO2 emissions, energy consumption and economic growth in China: A panel data analysis. Energy Policy, 39(9), 4870–4875.CrossRefGoogle Scholar
  63. Xu, Z. (2000). Financial development, investment, and economic growth. Economic Inquiry, 38(2), 331–344.CrossRefGoogle Scholar
  64. Yang, L., & Wang, K. L. (2013). Regional differences of environmental efficiency of China’s energy utilization and environmental regulation cost based on provincial panel data and DEA method. Mathematical and Computer Modelling, 58(5–6), 1074–1083.CrossRefGoogle Scholar
  65. Zhang, F. (2013). The energy transition of the transition economies: An empirical analysis. Energy Economics, 40, 679–686.CrossRefGoogle Scholar
  66. Zhao, L., Mao, G., Wang, Y., Du, H., Zuo, J., Liu, Y., & Huisingh, D. (2017). How to achieve low/no-fossil carbon transformations: With special focus upon mechanisms, technologies and policies. Journal of Cleaner Production, 163, 15–23.CrossRefGoogle Scholar
  67. Zhao, Y., & Wang, S. (2015). The relationship between urbanization, economic growth and energy consumption in China: An econometric perspective analysis. Sustainability, 2015(7), 5609–5627.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Lina Sineviciene
    • 1
    Email author
  • Oleksandra V. Kubatko
    • 2
  • Iryna M. Sotnyk
    • 2
  • Ausrine Lakstutiene
    • 1
  1. 1.School of Economics and Business, Kaunas University of TechnologyKaunasLithuania
  2. 2.Department of Economics and Business AdministrationSumy State UniversitySumyUkraine

Personalised recommendations