Exploring the relationship between CO₂, economic growth, and other influential factors in the European Union

The rapid development of the economy impacts environmental degradation, where climate change is the major issue. Despite all efforts of international organisations, governments, businesses, and ordinary citizens, the problem cannot be successfully managed. The main objective of the study was to test the relationship between CO₂ and economic growth and two other indicators. In addition, the share of renewable energy and energy efficiency level indicators was included to testing environmental investments in the energy sector. The study used a sample of 23 EU member states over the period 2009-2023. Data were obtained from Eurostat and normalised using the mean-standardisation approach. Regression analysis was used to examine the relationships among the selected variables. The regression analysis confirmed that GDP and renewable energy consumption had positive effects on CO₂ emissions, whereas energy intensity had no statistically significant effect. To more deeply reveal regional structural development tendencies, the chosen sample was categorized into three groups using K-means clustering. Despite efforts to delink economic growth from CO₂ emissions, the findings indicate that this objective has not yet been achieved. The study emphasised the need for stronger political commitment and more effective strategies to achieve meaningful progress in the emission-growth delinking process. The analysis covered a specific period and the ceteris paribus assumption may not hold fully due to the presence of other factors. Further examination of additional explanatory factors may also provide new insights and policy implications.