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The economic instruments and macroeconomic stabilization on the decarbonization of central and eastern European countries

Kowalska Magdalena, Misztal Anna

Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska

2024

z. 195

319--334

Purpose: This paper aims to assess the impact of energy economic instruments and macroeconomic stabilization on decarbonization in the Central and Eastern European Countries (CEECs) from 2005 to 2019. The central research hypothesis (H) is "The impact of economic instruments and macroeconomic stabilization on decarbonization varies in the Central and Eastern European Countries from 2005 to 2019". Design/methodology/approach: We use the Ordinary Least Squares (OLS) to verify our hypothesis. Findings: The impact of economic instruments is varied. The most effective instruments are the EU Emissions Trading System, outlays on renewable energy sources, and futures contracts for CO2 emissions. Research limitations/implications: The availability of data, the choice of normalization method and the choice of estimation method for both the one-equation model. Practical implications: The results show that economic instruments and macroeconomic stabilization have a positive impact on the decarbonization of economies, hence shaping their appropriate level is important for sustainable development. Social implications: Economic instruments impact on decarbonization and thus improve the quality of life. Originality/value: The impact of economic instruments is varied. The most effective instruments are the EU Emissions Trading System, outlays on renewable energy sources, and futures contracts for CO2 emissions.