The paper investigates the relation between environmental degradation and economic development. The authors focused on the situation specific to the EU-28 Member States for the timeframe 1960-2014. The study used the variables CO 2 emissions, GDP per capita, imports of goods and services, exports of goods and services and energy use. The research has been divided in three distinct stages. The first stage consisted in data collection and management by analysing the existence of the unit root and determining the level at which the data is stationary. The second stage consisted in the testing Granger Causality relations between the variables for 2-5 lags. The third stage consisted in the estimation of a regression equation of the environmental Kuznets curve type. The results demonstrate the applicability of environmental Kuznets curve for the EU-28 Member States. These results can be used for design of industrial policies of these states, considering these states sustainable development goals. The public authorities are aware of the importance of environmental protection and of the correlation between environment and the economy development. The authors consider that the results of this article are an useful instrument to establish the macroeconomic policies while considering the perspective of sustainable development.
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Mirela Panait (2019) studied this question.