Work

Spatial econometric analysis of interdependencies and environmental dynamics in the Black Sea region

Year: 2026

Type: article

Abstract: The Black Sea region is characterized by diverse economies, energy structures, and environmental policies, leading to significant spatial interdependencies in CO 2 emissions. This study examines the spatial dynamics of CO 2 emissions in the region using spatial econometric models, including Spatial Autoregressive (SAR), Spatial Error (SEM), and Spatial Durbin Models (SDM). The analysis covers the period 1990–2023, investigating the effects of GDP, renewable energy consumption, urbanization, and foreign direct investment (FDI) on emissions. The findings reveal strong spatial spillover effects, where CO 2 emissions in one country influence neighboring regions. Renewable energy consumption significantly reduces emissions, both directly and through spillovers, while GDP and urbanization contribute to higher emissions. FDI has a negative effect on CO 2 emissions, suggesting its role in promoting clean technologies and sustainable investments, depending on host country policies. These results highlight the need for regional coordination in addressing environmental challenges. Joint renewable energy projects, sustainable urban planning, and green investment incentives are important for reducing emissions. Policymakers should consider cross-border cooperation, particularly between EU and non-EU Black Sea countries, to strengthen environmental policies and accelerate the transition to a low-carbon economy.

Source: SN Business & Economics

DOI: 10.1007/s43546-026-01144-2

Authors: Irina Georgescu, Jani Kinnunen

Institutions: Bucharest University of Economic Studies, Åbo Akademi University

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $2,390