Economic and environmental factors determining carbon dioxide emissions in Lithuania

Abstract

Carbon dioxide (CO₂) emissions are a key factor in climate change, closely linked to economic growth and energy consumption. This study examines the relationship between CO₂ emissions, GDP per capita, and renewable energy consumption in Lithuania from 2005 to 2023. The results indicate that renewable energy use has increased over the past two decades, while GDP has grown, except during periods of economic downturn. The econometric analysis reveals that GDP per capita significantly increases CO₂ emissions, whereas renewable energy consumption reduces them. The regression model explains 81.2% of the variation in emissions. These findings suggest that while economic growth contributes to higher emissions, investments in sustainable energy sources are an effective way to mitigate environmental impact. The study highlights the need for Lithuania to continue its transition to clean energy to reduce reliance on fossil fuels and minimize environmental harm. The research results emphasize that to reduce CO₂ emissions in Lithuania, it is necessary not only to increase the use of renewable energy but also to ensure effective environmental policies. Government intervention, such as subsidies for green energy or the regulation of pollution taxes, can be effective instruments in reducing greenhouse gas emissions.