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Abstract


TRIAL ON CORRELATION BETWEEN ENVIRONMENTAL SUSTAINABILITY AND HUMAN CAPITAL IN THE EUROPEAN UNION

The purpose of this research was to analyze the presence of the correlation between human capital and environmental sustainability in the European Union in 1990-2014 investigation periods. In accordance with this purpose, CO2 emission represents the environment parameter; to represent the human capital parameter GDP, schooling rate in primary education, secondary education and higher education, life expectancy variables are used. The findings obtained from ARDL Bound Testing for the long-standing dynamics confirm that GDP, schooling rate in higher education and life expectancy are the identifiers of CO2 emission in the long term. With reference to the finding, the increases in GDP and schooling rate in higher education negatively affect the environmental quality; however, the increases in life expectancy positively affect the environmental quality. The findings obtained by the Error Correction Model in terms of the short standing dynamics pointed out that there is a statistically significant correlation between GDP and CO2 emission in the same direction as the long-term coefficients in the short term. Besides, a statistically significant correlation between schooling rate and life expectancy in the same direction as the long-term coefficients in the short term. Moreover, the error correction coefficient explains that 43% of long-termed deviations from the balance can be removed after short-term shocks.



Keywords
Human Capital, Environmental Sustainability, European Union, ARDL Boundary Test



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