Effects of Social and Economic Development on CO2 Emissions in the Countries of the Visegrad Group

The aim of this study is to assess the impact of socio-economic development, consumption of renewable energy, educational spending, and foreign direct investment on carbon dioxide emissions in the Visegrad countries (Czech Republic, Hungary, Poland, and Slovakia) between 1991 and 2021. The study employed the Autoregressive-Distributed Lag Bound Testing model and Toda–Yamamoto causality tests to establish short- and long-term relationships for each of the dependent variables and countries, aiming to verify the hypotheses. For the Czech Republic and Slovakia, a bidirectional relationship was identified between carbon emissions and the Human Development Index (HDI). In Poland, bidirectional causality was indicated between renewable energy consumption and carbon dioxide emissions. Unidirectional causality was evident for the Czech Republic, Hungary, and Slovakia between the specified variables. Short-term findings indicate that an increase in renewable energy production may lead to higher carbon dioxide emissions in the Visegrad countries. In the long term, only Slovakia demonstrates a significant relationship between educational spending and reduced carbon emissions. Toda–Yamamoto tests reveal unidirectional causality between foreign direct investment and carbon dioxide emissions for the Czech Republic and Slovakia. Empirical findings suggest that policymakers should invest in socio-economic development and renewable energy to reduce CO2 emissions and achieve long-term sustainability in the Visegrad countries. Poland needs to shift its energy policy away from coal, and all countries should enhance education to effectively transmit environmental knowledge and values.