Strengthening Institutional Governance to Counteract Urban-Driven Carbon Emissions in Central Europe: Insights from Economies in the Black Triangle Industrial Zone

Authors

  • Virgiline Kongni FOPA Department of Business Management, Faculty of Business, Girne American University, Kyrenia, Northern Cyprus, TR-10 Mersin, Turkey
  • Mohamed YUFENYUY Department of Business Management, Faculty of Business, Girne American University, Kyrenia, Northern Cyprus, TR-10 Mersin, Turkey https://orcid.org/0000-0002-9235-883X

DOI:

https://doi.org/10.54536/ajee.v5i2.8796

Keywords:

Black Sea Basin, BlackTriangle, Central Europe, Institutional Governance, Panel Ardl/Pmg, Regulatory Quality, Urban-Driven Emissions

Abstract

Urban expansion and industrial concentration in Central Europe’s historic Black Triangle zone-encompassing Germany, Poland, and the Czech Republic-continue to drive elevated carbon dioxide (CO2) emissions, posing significant challenges to regional climate goals and the downstream ecological stability of the Baltic and North Sea basins. Rapid employment-based urban migration expands built environments, alters land-use patterns, and intensifies energy demand across industrial corridors. This research empirically examines the dynamic long-run impacts of institutional governance, urban migration, and fossil energy consumption on CO2 emissions in three economies across the Black Triangle Industrial zone of Central Europe over the period 1998:Q4 to 2021:Q4. Utilizing the Pooled Mean Group (PMG) estimator within a Panel Autoregressive Distributed Lag (ARDL) framework, the long-run empirical results reveal that: (i) strengthening institutional quality significantly abates CO2 emissions, whereas (ii) both fossil fuel consumption and urban migration exert a statistically significant positive effect on long-run carbon emissions. These insights underscore that robust institutional governance is essential to decoupling urban economic growth from environmental degradation. To achieve UN Agenda 2030 targets and mitigate transboundary environmental impacts-including marine resource degradation and eutrophication in connected Central and Northern European catchments-policy interventions must prioritize institutional capacity building, accelerated investments in renewable energy alternatives, and the deployment of smart, green technology-driven transport systems leveraging artificial intelligence and the Internet of Things (IoT).

Downloads

Download data is not yet available.

References

Abrar ul Haq, M., Akram, F., Ashiq, U., & Raza, S. (2019). The employment paradox to improve women’s empowerment in Pakistan. Cogent Social Sciences, 5(1), 1707005.

Acaravci, A., & Ozturk, I. (2010). On the relationship between energy consumption, CO2 emissions and economic growth in Europe. Energy, 35(12), 5412-5420. https://doi.org/10.1016/j.energy.2010.07.009

Acheampong, A. O., Adams, S., & Boateng, E. (2019). Do globalization and renewable energy contribute to carbon emissions mitigation in Sub-Saharan Africa?. Science of the Total Environment, 677, 436-446. https://doi.org/10.1016/j.scitotenv.2019.04.353

Adams, S., Adom, P. K., & Klobodu, E. K. M. (2016). Urbanization, regime type and durability, and environmental degradation in Ghana. Environmental Science and Pollution Research, 23, 23825-23839. https://doi.org/10.1007/s11356-016-7513-4

Addai, K., Kirikkaleli, D., Ampong, G. O. A., & Yufenyuy, M. (2024). Assessing long run asymmetric effect of urbanization, fossil energy consumption and regulatory quality on environmental degradation in the Black Sea Region: a dynamic analysis. World Development Sustainability, 4, 100153.

Addai, K., Serener, B., & Kirikkaleli, D. (2022). Empirical analysis of the relationship among urbanization, economic growth and ecological footprint: evidence from eastern Europe. Environmental Science and Pollution Research, 29(19), 27749-27760.

Addai, K., Serener, B., & Kirikkaleli, D. (2022). Environmental sustainability and regulatory quality in emerging economies: empirical evidence from eastern European region. Journal of the Knowledge Economy, 1-37.

Ali, H. S., Law, S. H., & Zannah, T. I. (2016). Dynamic impact of urbanization, economic growth, energy consumption, and trade openness on CO 2 emissions in Nigeria. Environmental Science and Pollution Research, 23(12), 12435-12443. https://doi.org/10.1007/s11356-016-6437-3

Ali, M., & Kirikkaleli, D. (2022). The asymmetric effect of renewable energy and trade on consumption‐based CO2 emissions: the case of Italy. Integrated Environmental Assessment and Management, 18(3), 784-795.

Ali, R., Bakhsh, K., & Yasin, M. A. (2019). Impact of urbanization on CO2 emissions in emerging economy: evidence from Pakistan. Sustainable Cities and Society, 48, 101553.

Aljebrin, M. A. (2012). Labor demand and economic growth in Saudi Arabia. American Journal of Business and Management, 1(4), 271-277.

Al-Mulali, U., & Ozturk, I. (2015). The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (Middle East and North African) region. Energy, 84, 382-389.

Aron, J. (2000). Growth and institutions: a review of the evidence. The world Bank research observer, 15(1), 99-135.

Azam, M., & Khan, A. Q. (2016). Urbanization and environmental degradation: evidence from four SAARC countries-Bangladesh, India, Pakistan, and Sri Lanka. Environmental progress & sustainable energy, 35(3), 823-832. https://doi.org/10.1002/ep.12282

Azam, M., Khan, A. Q., & Ozturk, I. (2019). The effects of energy on investment, human health, environment and economic growth: empirical evidence from China. Environmental Science and Pollution Research, 26(11), 10816-10825.

Bai, J., & Ng, S. (2004). A PANIC attack on unit roots and cointegration. Econometrica, 72(4), 1127-1177.

Beck, N., & Katz, J. N. (2011). Modeling dynamics in time-series–cross-section political economy data. Annual review of political science, 14, 331-352.

Bese, E. (2019). Testing the environmental Kuznets curve hypothesis: evidence from Egypt, Kenya and Turkey. 670216917.

Blažková, M. (1996). Black Triangle—the most polluted part of Central Europe. In Regional approaches to water pollution in the environment (pp. 227-249). Dordrecht: Springer Netherlands.

Breheny, M. (1995). The compact city and transport energy consumption. Transactions of the institute of British Geographers, 81-101. https://doi.org/10.2307/622726

Breusch, T.S. and A.R. Pagan, 1979, A simple test for heteroscedasticity and random coefficient variation, Econometrica 47, 1287- 1294

Buonocore, J. J., Choma, E., Villavicencio, A. H., Spengler, J. D., Koehler, D. A., Evans, J. S., ... & Sanchez-Pina, R. (2019). Metrics for the sustainable development goals: renewable energy and transportation. Palgrave Communications, 5(1).

Campello, M., Galvao, A. F., & Juhl, T. (2019). Testing for slope heterogeneity bias in panel data models. Journal of Business & Economic Statistics, 37(4), 749-760.

Candelon, B., Joëts, M., & Tokpavi, S. (2013). Testing for Granger causality in distribution tails: an application to oil markets integration. Economic Modelling, 31, 276-285.

Chen, Y., Wang, Z., & Zhong, Z. (2019). CO2 emissions, economic growth, renewable and non-renewable energy production and foreign trade in China. Renewable energy, 131, 208-216. https://doi.org/10.1016/j.renene.2018.07.047

Cheng, Z., Li, L., & Liu, J. (2017). The emissions reduction effect and technical progress effect of environmental regulation policy tools. Journal of Cleaner Production, 149, 191-205. https://doi.org/10.1016/j.jclepro.2017.02.105

Chudik, A., & Pesaran, M. H. (2013). Large panel data models with cross-sectional dependence: a survey.

Cole, M. A., & Neumayer, E. (2004). Examining the impact of demographic factors on air pollution. Population and Environment, 26(1), 5-21. https://doi.org/10.1023/B:POEN.0000039950.85422.eb

De Francesco, F., & Radaellli, C. M. (2007). Indicators of regulatory quality. Edward Elgar Publishing, 36.

Dietz, T., & Rosa, E. A. (1997). Environmental impacts of population and consumption. Environmentally significant consumption: Research directions, 92-99.

Dinda, S. (2004). Environmental Kuznets curve hypothesis: a survey. Ecological economics, 49(4), 431-455. https://doi.org/10.1016/j.ecolecon.2004.02.011

DOSTÁL, D. (2012). Síť na peníze. E15. cz: Euro [online].

Dumitrescu, E. I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic modelling, 29(4), 1450-1460.

Effiong, E. (2016). Urbanization and environmental quality in Africa. https://mpra.ub.uni-muenchen.de/id/eprint/73224

Erdogan, S., Okumus, I., & Guzel, A. E. (2020). Revisiting tthe environmental kuznets curve hypothesis in oecd countries: the role of renewable, non-renewable energy, and oil prices. Environmental Science and Pollution Research, 27(19), 23655-23663.

Fan, Y., Liu, L. C., Wu, G., & Wei, Y. M. (2006). Analyzing impact factors of CO2 emissions using the STIRPAT model. Environmental Impact Assessment Review, 26(4), 377-395.

Gani, A. N., & Assarudeen, S. M. (2012). A new operation on triangular fuzzy number for solving fuzzy linear programming problem. Applied Mathematical Sciences, 6(11), 525-532.

Gasimli, O., Haq, I. U., Naradda Gamage, S. K., Shihadeh, F., Rajapakshe, P. S. K., & Shafiq, M. (2019). Energy, trade, urbanization and environmental degradation nexus in Sri Lanka: bounds testing approach. Energies, 12(9), 1655. https://doi.org/10.3390/en12091655

Granger, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: journal of the Econometric Society, 424-438.

Harrison, N., Agnew, S., & Serido, J. (2015). Attitudes to debt among indebted undergraduates: a cross-national exploratory factor analysis. Journal of Economic Psychology, 46, 62-73. https://doi.org/10.1016/j.joep.2014.11.005

Holden, E., & Norland, I. T. (2005). Three challenges for the compact city as a sustainable urban form: household consumption of energy and transport in eight residential areas in the greater Oslo region. Urban studies, 42(12), 2145-2166. https://doi.org/10.1080/00420980500332064

Hu, Y., Cheng, H., & Tao, S. (2017). Environmental and human health challenges of industrial livestock and poultry farming in China and their mitigation. Environment international, 107, 111-130.

Ikpesu, F., Vincent, O., & Dakare, O. (2019). Growth effect of trade and investment in Sub-Saharan Africa countries: empirical insight from panel corrected standard error (PCSE) technique. Cogent Economics & Finance.

Ikram, M., Zhang, Q., Sroufe, R., & Shah, S. Z. A. (2020). Towards a sustainable environment: the nexus between ISO 14001, renewable energy consumption, access to electricity, agriculture and CO2 emissions in SAARC countries. Sustainable Production and Consumption, 22, 218-230.

Im, K. S., & Pesaran, M. H. (2003). On the panel unit root tests using nonlinear instrumental variables. Available at SSRN 482463.

Ityavyar, E. M., & Thomas, T. T. (2012). Environmental pollution in Nigeria: the need for awareness. J Res For Wildl Environ, 4, 334-340.

Jafari, Y., Ismail, M. A., Othman, J., & Mawar, M. Y. (2015). Energy consumption, emissions and economic growth in Bahrain. Chinese Journal of Population Resources and Environment, 13(4), 297-308. https://doi.org/10.1080/10042857.2015.1078493

Jones, J. J. (1991). Earnings management during import relief investigations. Journal of accounting research, 29(2), 193-228. https://doi.org/10.2307/2491047

Lapinskienė, G., & Tvaronavičienė, M. (2009). Sustainable development across Central and Eastern Europe: key factors driving the economic growth of the countries. Business: Theory and Practice, 10(3), 204-213.

Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of econometrics, 108(1), 1-24.

Luo, G., Weng, J. H., Zhang, Q., & Hao, Y. (2017). A reexamination of the existence of environmental Kuznets curve for CO2 emissions: evidence from G20 countries. Natural Hazards, 85(2), 1023-1042. https://doi.org/10.1007/s11069-016-2618-0

Majeed, A., Wang, L., Zhang, X., & Kirikkaleli, D. (2021). Modeling the dynamic links among natural resources, economic globalization, disaggregated energy consumption, and environmental quality: fresh evidence from GCC economies. Resources Policy, 73, 102204. https://doi.org/10.1016/j.resourpol.2021.102204

Marcotullio, P., & Lee, Y. S. (2003). Urban environmental transitions and urban transportation systems: a comparison of the North American and Asian experiences. International Development Planning Review, 25(4), 325-355. https://doi.org/10.3828/idpr.25.4.2

Mardani, A., Streimikiene, D., Cavallaro, F., Loganathan, N., & Khoshnoudi, M. (2019). Carbon dioxide (CO2) emissions and economic growth: a systematic review of two decades of research from 1995 to 2017. Science of the total environment, 649, 31-49.

Mikayilov, J. I., Galeotti, M., & Hasanov, F. J. (2018). The impact of economic growth on CO2 emissions in Azerbaijan. Journal of cleaner production, 197, 1558-1572. https://doi.org/10.1016/j.jclepro.2018.06.269

Mohiuddin, O., Asumadu-Sarkodie, S., & Obaidullah, M. (2016). The relationship between carbon dioxide emissions, energy consumption, and GDP: a recent evidence from Pakistan. Cogent Engineering, 3(1), 1210491. https://doi.org/10.1080/23311916.2016.1210491

Nathaniel, S., Nwodo, O., Adediran, A., Sharma, G., Shah, M., & Adeleye, N. (2019). Ecological footprint, urbanization, and energy consumption in South Africa: including the excluded. Environmental Science and Pollution Research, 26, 27168-27179.

Niccolucci, V., Tiezzi, E., Pulselli, F. M., & Capineri, C. (2012). Biocapacity vsecological footprint of world regions: a geopolitical interpretation. Ecological Indicators, 16, 23-30.

Novy, M. (1996). International Actions to Combat Pollution in the Black Triangle and Katowice Regions.

Ozturk, I., & Acaravci, A. (2010). CO2 emissions, energy consumption and economic growth in Turkey. Renewable and Sustainable Energy Reviews, 14(9), 3220-3225. https://doi.org/10.1016/j.rser.2010.07.005

Panayotou, T. (2000). Globalization and environment. CID Working Paper Series. https://www.hks.harvard.edu/centers/cid/publications

Pao, H. T., & Tsai, C. M. (2011). Multivariate Granger causality between CO2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): evidence from a panel of BRIC (Brazil, Russian Federation, India, and China) countries. Energy, 36(1), 685-693. https://doi.org/10.1016/j.energy.2010.09.041

Pata, U. K. (2018). Renewable energy consumption, urbanization, financial development, income and CO2 emissions in Turkey: testing EKC hypothesis with structural breaks. Journal of cleaner production, 187, 770-779. https://doi.org/10.1016/j.jclepro.2018.03.236

Peet, R., Robbins, P., & Watts, M. (2010). Global nature. In Global political ecology (pp. 15-62). Routledge.

Pesaran MH, Shin Y, Smith RP (1999) Pooled mean group estimation of dynamic heterogeneous panels. J Am Stat Assoc 94(446):621–634. https://doi.org/10.1080/01621459.1999.10474156

Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of applied econometrics, 22(2), 265-312.

Pesaran, M. H. 2004. General diagnostic tests for cross section dependence in panels. University of Cambridge, Faculty of Economics, Cambridge Working Papers in Economics No. 0435.

Pesaran, M. H., & Smith, R. (1995). Estimating long-run relationships from dynamic heterogeneous panels. Journal of econometrics, 68(1), 79-113.

Ponce de Leon Barido, D., & Marshall, J. D. (2014). Relationship between urbanization and CO2 emissions depends on income level and policy. Environmental science & technology, 48(7), 3632-3639. https://doi.org/10.1021/es405117n

Raihan, A., Bala, S., Akther, A., Ridwan, M., Eleais, M., & Chakma, P. (2024). Advancing environmental sustainability in the G-7: the impact of the digital economy, technological innovation, and financial accessibility using panel ARDL approach. Journal of Economy and Technology. https://doi.org/10.1016/j.ject.2024.06.001

Renner, E. (2002). The black triangle area—fit for Europe?. AMBIO: A Journal of the Human Environment, 31(3), 231-235.

Rivera, J. (2004). Institutional pressures and voluntary environmental behavior in developing countries: evidence from the Costa Rican hotel industry. Society and Natural Resources, 17(9), 779-797.

Saboori, B., Sulaiman, J. B., & Mohd, S. (2012). An empirical analysis of the environmental Kuznets curve for CO2 emissions in Indonesia: the role of energy consumption and foreign trade. International Journal of Economics and Finance, 4(2), 243-251. https://doi.org/https://doi.org/10.5539/ijef.v4n2p243

Sadorsky, P. (2014). The effect of urbanization on CO2 emissions in emerging economies. Energy economics, 41, 147-153. https://doi.org/10.1016/j.eneco.2013.11.007

Sarafidis, V., & Robertson, D. (2009). On the impact of error cross‐sectional dependence in short dynamic panel estimation. The Econometrics Journal, 12(1), 62-81.

Stern, D. I. (2004). The rise and fall of the environmental Kuznets curve. World development, 32(8), 1419-1439.

Stern, J., & Cubbin, J. (2005). Regulatory effectiveness: The impact of regulation and regulatory governance arrangements on electricity industry outcomes (Vol. 3536). World Bank Publications.

Tarazkar, M. H., Dehbidi, N. K., Ozturk, I., & Al-Mulali, U. (2021). The impact of age structure on carbon emission in the Middle East: the panel autoregressive distributed lag approach. Environmental Science and Pollution Research, 28, 33722-33734. https://doi.org/https://doi.org/10.1007/s11356-020-08880-4

Triassi, M., Alfano, R., Illario, M., Nardone, A., Caporale, O., & Montuori, P. (2015). Environmental pollution from illegal waste disposal and health effects: a review on the “Triangle of Death”. International Journal of Environmental research and public health, 12(2), 1216-1236.

Turvey, Ralph, and A. R. Nobay. “On measuring energy consumption.” The Economic Journal 75, no. 300 (1965): 787-793.

Uttara, S., Bhuvandas, N., & Aggarwal, V. (2012). Impacts of urbanization on environment. International Journal of Research in Engineering and Applied Sciences, 2(2), 1637-1645.

Veleva, V., Hart, M., Greiner, T., & Crumbley, C. (2003). Indicators for measuring environmental sustainability: a case study of the pharmaceutical industry. Benchmarking: An international journal.

Wang, J., Liu, X., Li, Y., Powell, T., Wang, X., Wang, G., & Zhang, P. (2019). Microplastics as contaminants in the soil environment: a mini-review. Science of the total environment, 691, 848-857. https://doi.org/10.1016/j.scitotenv.2019.07.209

Wawrzyniak, D., & Doryń, W. (2020). Does the quality of institutions modify the economic growth-carbon dioxide emissions nexus? evidence from a group of emerging and developing countries. Economic research-Ekonomska istraživanja, 33(1), 124-144.

Westerlund, J., Thuraisamy, K., & Sharma, S. (2015). On the use of panel cointegration tests in energy economics. Energy Economics, 50, 359-363.

Wu, J., Liao, H., Wang, J. W., & Chen, T. (2019). The role of environmental concern in the public acceptance of autonomous electric vehicles: a survey from China. Transportation Research Part F: Traffic Psychology and Behaviour, 60, 37-46.

Wu, X., Cobbina, S. J., Mao, G., Xu, H., Zhang, Z., & Yang, L. (2016). A review of toxicity and mechanisms of individual and mixtures of heavy metals in the environment. Environmental Science and Pollution Research, 23(9), 8244-8259. https://doi.org/10.1007/s11356-016-6333-x

Yi, Y., Ma, S., Guan, W., & Li, K. (2017). An empirical study on the relationship between urban spatial form and CO2 in Chinese cities. Sustainability, 9(4), 672. https://doi.org/10.3390/su9040672

Zhao, F., Repo, E., Yin, D., Meng, Y., Jafari, S., & Sillanpää, M. (2015). EDTA-cross-linked β-cyclodextrin: an environmentally friendly bifunctional adsorbent for simultaneous adsorption of metals and cationic dyes. Environmental Science & Technology, 49(17), 10570-10580.

Sato, T., Qadir, M., Yamamoto, S., Endo, T., & Zahoor, A. (2013). Global, regional, and country level need for data on wastewater generation, treatment, and use. Agricultural Water Management, 130, 1-13.

Gillanders, R. (2014). Corruption and infrastructure at the country and regional level. Journal of Development Studies, 50(6), 803-819.

Żurakowska-Sawa, J., & Pyra, M. (2024). Assessment and forecasting of energy efficiency in economic sectors in Poland. Energies, 17(9), 2128.

Kadioglu, I., & Gurbuz, I. B. (2024). Formulating eco-friendly strategies: transition to green economy. Sustainability, 16(11), 4492.

Żak, K., & Pyra, M. (2024). Comparison of Trends in Sustainable Energy Development in the Czech Republic and Poland. Sustainability, 16(20), 8822.

Scholz, R., Beckmann, M., Pieper, C., Muster, M., & Weber, R. (2014). Considerations on providing the energy needs using exclusively renewable sources: transition in Germany. Renewable and Sustainable Energy Reviews, 35, 109-125.

Kochanek, E. (2024). Energy lobbying in the decision-making process of the European union. Studia Europejskie, 28(1), 51-69.

Downloads

Published

2026-10-23

How to Cite

FOPA, V. K. ., & YUFENYUY, M. . (2026). Strengthening Institutional Governance to Counteract Urban-Driven Carbon Emissions in Central Europe: Insights from Economies in the Black Triangle Industrial Zone. American Journal of Environmental Economics, 5(2), 72-84. https://doi.org/10.54536/ajee.v5i2.8796

Similar Articles

31-36 of 36

You may also start an advanced similarity search for this article.