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The challenges and opportunities of climate change policy under different stages of economic development

Climate change policy confronts with many challenges and opportunities. Thus the aim of this study was to analyse the impact of gross domestic product (hereinafter GDP), trade, foreign direct investment (hereinafter FDI), energy efficiency (hereinafter EF) and renewable energy (hereinafter RE) consumption on greenhouse gas (hereinafter GHG) emissions in 1990–2013 and reveal the main challenges and opportunities of climate policy for which policy makers should take the most attention under different stages of economic development. The results showed that the economic growth significantly contributed to the increase of GHG emissions and remains the main challenge in all groups of countries. Analysing the trade impact on pollution, the results revealed that the growth of export (hereinafter EX) significantly reduced GHG emissions only in high income countries. However, the export remains a challenge in low income countries. FDI insignificantly determined the changes in GHG emissions in all groups of countries. Meanwhile, energy efficiency and share of renewable energy consumption are the main opportunities of climate change policy because they reduce the GHG emissions in all groups of countries. Thus, technological processes, the increase of energy efficiency and the shift from carbon to renewable energy sources are the main tools implementing the climate change policy in all countries despite the different stage of economic development.


Keywords: Climate change; Trade; Leakage phenomenon; FDI; Energy efficiency; Renewable energy


Liobikienė, G.; Butkus, M. 2018. The challenges and opportunities of climate change policy under different stages of economic development. In Science of the Total Environment Vol. 642 (2018) p. 999–1007. ISSN 0048-9697. https://doi.org/10.1016/j.scitotenv.2018.06.140 [MEDLINE®; CSA Technology Research Database; Current Contents/Agriculture, Biology & Environmental Sciences; Biology & Environmental Sciences; Environmental Periodicals Bibliography; EMBASE; Oceanographic Literature Review; PASCAL/CNRS; Selected Water Resources Abstracts; Sociedad Iberoamericana de Informacion Cientifica (SIIC) Data Bases; Elsevier BIOBASE; Meteorological and Geoastrophysical Abstracts; Scopus].


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CiteScore: 4.98

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Impact Factor: 4.900

5-Year Impact Factor: 5.102

Source Normalized Impact per Paper (SNIP): 1.650

SCImago Journal Rank (SJR): 1.546



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