Analyzing the environmental Kuznets curve for transportation modes in European countries

Abstract

This paper inspects the environmental Kuznets curve (EKC) in various transport sectors in 13 European Union (EU) countries. The study uses the augmented mean group estimator (AMG) estimator to examine the relationships between carbon (CO2) emissions, income, and energy consumption of four transport modes, such as road, maritime, rail, and air, between 1995 and 2019. The outcomes illustrate that the EKC hypothesis is valid for six countries in air transport, four in maritime transport, three in rail transport, and six in road transport. In addition, the findings indicate that fossil fuels significantly increase CO2 emissions from transportation modes. In light of the study's findings, EU countries should improve energy efficiency in the transportation sector to become carbon neutral by 2050. In order to ensure an environmental balance between transport modes, policymakers should support innovative activities to increase renewable fuel consumption.