THE PECULIARITIES OF ACTION OF ENVIRONMENTAL KUZNETS CURVE IN THE VISEGRAD GROUP COUNTRIES

Abstract

The peculiarities of action of environmental Kuznets curve in the Visegrad Group countries (Czech Republic, Hungary, Poland and Slovakia) have been investigated. In order to do this, it has been used regression analysis and built correlation-regression model. The task of one-factor regression analysis has been solved using logarithmic function and time series. The results of the investigation showed that despite the fact that Visegrad Group countries are the members of the EU and implement all ecological directives of the European Parliament, the size of CO2 emissions still remains rather high. For instance, it is more than 10 t per capita in the Czech Republic, it varies from 8 to 9 t per capita in Poland, it is almost 7 t per capita in Slovakia. In other words, increase in GDP per capita really results in decrease in pollution but this process is lagging behind comparing with increase in wealth of nations. In this regard, environmental Kuznets curve does not work in the Visegrad Group countries and it can be described as N-curve. So it is needed to improve the strategies of ecological and economic development in the Visegrad Group countries and that strategies must be not only corresponded to European standards but also include historical, social, economic and ecological pecularities of that region. Firstly, it is necessary to reform taxation system towards further shifting from accent on individual taxes to accent on ecological taxes, namely payments for environmental pollution and climate change. Secondly, it is important to resuscitate financial markets in these countries inculcating “ecological” (or “green”) bonds. Private investors from different countries will buy “green" bonds and profits from such deals will be distributed on financing the programs aiming the decrease in anthropogenic load for regional ecosystem. Thirdly, it is necessary to stimulate development of electric transport (electric buses and electric cars). Fourthly, it is needed to increase significantly the specific weight of renewable resources such as wind energy, bioenergy and small hydropower in the energy sector of these countries.