Article

 

Examining the linkages between GDP growth and sustainable development in the Eurozone (p.15-37)

by

Ioannis A. Tampakoudis, University of Macedonia, Thessaloniki, Greece

Dimitra Fylantzopoulou, University of Macedonia, Thessaloniki, Greece

Konstantina Nikandrou, University of Macedonia, Thessaloniki, Greece

Keywords : Sustainable development, Eurozone; Indicators, European Commission, GDP growth, Action plan

JEL classification : Q3, Q4

Abstract

The paper intends to investigate the link between sustainable development and GDP growth rate in the Eurozone. We utilize a defined set of eleven indicators of sustainability according to the European Commission, performing an econometric analysis focusing both on the Eurozone and on each country separately. Among others, “Employment rate of older workers”, “Resource productivity”, “Real GDP”, “Energy consumption by transport mode”, “Gas emissions” and “Total renewable electricity net generation” seem to be the indicators with the highest importance. However, the last three sustainable indicators are unfavorably connected with GDP growth rate, indicating the necessity for alterations on the current economic model. Apart from a general strategic plan that is required in the EU context, certain policies should be applied in each country due to distinctive characteristics in the social, economic and political levels. Particularly for those countries experiencing the current financial crisis, the idea of sustainable development constitutes an exceptional opportunity that could lead to significant economic achievements.