ABSTRACT
Within the European Union (EU), the majority of countries are considered developed, and the level of economic activity is rising. As a result, carbon dioxide emissions have increased. If the European Union wants to maintain long-term, sustainable growth, it must act quickly to find solutions to pollution. Population, wealth, renewable energy, nuclear energy, and research and development (R&D) are all factored into the STIRPAT model to determine their respective environmental impacts. Slope heterogeneity and cross-sectional dependence are explored in panel data for 30 European nations from 1990 to 2021 using a newly developed Cross Section Autoregressive Distributed Lag (CS-ARDL) method. The study found that population growth and the continued use of fossil fuels are major causes of environmental degradation. Alternately, employing renewable and raising incomes both have the potential to significantly cut pollution over the long run. Likewise, investments in R&D assist lessen the damage done to the environment. The nuclear energy coefficients, however, are insignificant. However, fossil fuels have negative effects on the ecosystem. If the EU wishes to stop the degradation of the environment, the analysis demonstrates that renewable energy is the best way to do it. The time has come for the EU to make a gradual transition away from fossil fuels and toward more environmentally friendly alternatives. Economic growth should be matched by decreased CO2 emissions, and increasing investment in R&D can serve as a catalyst for environmental sustainability. The results were reviewed using three different estimators: the augmented mean group (AMG), the mean group (MG), and the common correlated effects mean group (CCEMG). Important policy recommendations for a sustainable European environment are also suggested by the research.
