This article assesses the impact of implementation of different sustainable development goals on greenhouse gas emissions. Greenhouse gas emissions (GHG) were used as a dependent variable representing environmental degradation or a proxy for the implementation of environmental policies, based on the literature review (see e.g. Shahbaz et al. 2016b; Lapinskienė at al. 2017; Sterpu et al. 2018; Kluza et al. 2021). Namely, we used the greenhouse gas (CO2 and N2O, CH4 in CO2 equivalent) emissions in the kilogrammes (thousands) per capita indicator from the Eurostat database.
The analysis encompasses three groups of procedures:
- panel data preparation and structuring of variables, including analysis of collinearity;
- selection of the basic model specification through the panel data modelling, including a precedent testing of variable stationarity;
- formulation of the final model specification with time lags and checking the marginal effects of variables, including geographic-specific effects with the use of factorial analysis.
The methodological aspects of all these stages are briefly described below. Due to the large number of analysed variables (over 70 indicators), the output for interim statistical procedures is not presented in the paper, but it is available on request.
Initially all the variables within respective SDGs were considered. All of the variables came from the Eurostat database for the period 2008–2018 to ensure a full integrity and comparability of the data. The data for EU 25 countries including the United Kingdom. Cyprus, Malta and Luxembourg were excluded due to the small size of their economies.
Firstly, the variables with missing observations for a whole year were excluded from the panel. This resulted in the elimination 15 variables due to data unavailability. Then, for the remaining variables full data completeness was assured, i.e. occasional missing observations were filled with proxy data, being a geometric mean of adjacent observations. This procedure encompassed less than 0.1% of all observations and allowed to obtain a balanced panel. This augmentation is important as with the relatively short time series any missing data would eliminate full year observations, which would affect the model's credibility.
Then, the remaining variables were transformed to relative indicators for better data comparability. This alteration affected 6 variables. The final step in data preparation was devoted to the elimination of collinearity between specific variables and the GHG variable. Variance inflation factors were used to detect collinearity through the iterative regression process. This eliminated the additional 8 variables.
The second group of procedures was devoted to the selection of the basic model specification. At the beginning the stationarity of data was checked. We employed the Levin-Lin-Chu test for panel ADF with time lag equal to 1 (Staszczyk, 2017). The undertaken procedure revealed that 6 variables were non-stationary of degree 1. Consequently, all variables were converted from their original values to their first differences to eliminate non-stationarity. Using first differences of variables still allows for relatively easy and straightforward interpretation of model coefficients.
The subsequent econometric modelling was carried out with the panel data regression functions. It is a prevailing econometric approach in this category of research, devoted to the issues of interdependence between socio-economic development, energy policy and environmental phenomena – see e.g. Tamazian et al. (2009), Aydin and Esen (2018), Ganda and Garidzirai (2020), Wang et al. (2020) and Sheraz et al. (2021a).
In our research, following Tamazian et al. (2009), we test the non-linear, i.e. U-shaped and N-shaped effects, which allow to identify the Environmental Kuznets curve phenomena (see e.g. Grossman and Krueger, 1995). We extend this line of research by checking the non-linearity of all explanatory variables. However, it is important to notice that, in fact, we do not have an unrestricted domain, as the analysed values for independent variables are located within specific ranges. Thus, the pure quadratic effects typically shall not emerge and, in practice,we check the existence of non-linear effects in the shape of (monotonic) convexity or concavity. The regression function, which is modelled initially, has a form, as follows:

where:
d_GHGit—the dependent variable (GHG), a first difference;
d_Cit—set of explanatory variables (k variables) consisting of individual indicators within the specific sustainable development goals for each country and year – first differences;
i—the cross-sectional dimension, representing individual countries analysed (from 1 to the N-th country); I Î {1, N};
t—the time dimension (annual data);
a—the intercept;
b—the structural parameters for respective explanatory variables in d_Cit set (1,…, k);
g—the structural parameters for respective explanatory variables in (d_Cit)2 set (1,…, k);
vi—error term representing time invariant unobserved characteristics;
eit—random error term.
As the result of the second set of procedures, a specification of the basic model (Model 1) was obtained, which is presented in 1. The econometric modelling was carried out with a ‘from general to specific’ approach that was based on the achievement of significance of individual variables, minimizing the information criteria (Akaike’s & Schwarz’s) as well as ensuring favourable results of joint tests on named regressors and no autocorrelation of error terms. The calculations were carried out with the Gretl ver. 1.9.90 and STATA 16.1 software.
In the modelling, pooled OLS panel data specification and fixed effects specification for individual i was used. The random effects specification was not feasible due to insufficient degrees of freedom in these models. The carried-out tests (test of variance of residuals and Breusch-Pagan test) indicated that the model with the pooled OLS panel data procedure is more appropriate (see Table 1).
Table 1. Model 1 - Basic specification of relationship between various SDG indicators and GHG
Pooled OLS; 250 observations; cross-section units = 25; time series length = 10. Beck-Katz standard errors.
|
Coefficient
|
p-value
|
|
Coefficient
|
p-value
|
constant
|
0.016495
|
0.54982
|
|
|
|
d_g01_30
|
-0.0226046
|
0.01774**
|
sq_d_g01_30
|
0.00138614
|
0.20188
|
d_g01_40
|
0.0362523
|
0.00126***
|
sq_d_g01_40
|
6.50308e-05
|
0.98508
|
d_g01_50
|
0.01612
|
0.00031***
|
sq_d_g01_50
|
-0.00155444
|
0.08882*
|
d_g02_30
|
-0.00297161
|
0.72819
|
sq_d_g02_30
|
-0.000544024
|
0.81812
|
d_g02_60
|
0.00164644
|
0.87352
|
sq_d_g02_60
|
-0.00276634
|
0.38829
|
d_g03_10
|
0.179812
|
0.00049***
|
sq_d_g03_10
|
-0.0162003
|
0.87496
|
d_g03_40
|
-0.00263802
|
0.93024
|
sq_d_g03_40
|
-0.0787836
|
0.00577***
|
d_g03_60
|
-0.0248627
|
0.01949**
|
sq_d_g03_60
|
-0.00300823
|
0.44698
|
d_g04_20
|
0.0237099
|
0.00973***
|
sq_d_g04_20
|
-0.00105129
|
0.33289
|
d_g04_50
|
0.00313767
|
0.37568
|
sq_d_g04_50
|
0.000891451
|
0.09321*
|
d_g05_50B
|
0.00530973
|
0.00108***
|
sq_d_g05_50B
|
-0.000529673
|
<0.0001***
|
d_g7_10
|
2.05907
|
<0.0001***
|
sq_d_g7_10
|
1.09584
|
0.00038***
|
d_g7_11
|
-0.140544
|
0.50538
|
sq_d_g7_11
|
-2.89037
|
0.00043***
|
d_g07_30
|
-0.206166
|
0.00004***
|
|
|
|
d_g07_40
|
0.0129116
|
0.39433***
|
sq_d_g07_40
|
0.0112593
|
0.04258**
|
d_g07_60
|
0.0223981
|
0.00401***
|
sq_d_g07_60
|
0.00087429
|
0.06052*
|
d_g08_10
|
0.0875365
|
0.00010***
|
|
|
|
d_g8_11
|
0.00844453
|
0.10582
|
sq_d_g8_11
|
-0.000838885
|
0.08330*
|
d_g09_10
|
-0.178272
|
0.07014*
|
sq_d_g09_10
|
-0.802373
|
0.04151**
|
d_g09_20
|
0.00857809
|
0.68651
|
sq_d_g09_20
|
-0.0553057
|
0.00002***
|
d_g09_40
|
-0.00251464
|
0.00183***
|
sq_d_g09_40
|
1.62348e-05
|
0.35199
|
d_g09_60
|
0.0215902
|
0.00252***
|
sq_d_g09_60
|
0.000433594
|
0.54223
|
d_g10_20
|
0.0514145
|
0.02424**
|
sq_d_g10_20
|
0.0417354
|
0.02036**
|
d_g10_30
|
-0.0224765
|
0.00002***
|
sq_d_g10_30
|
0.00100829
|
0.57182
|
d_g11_10
|
-0.0007228
|
0.93580
|
sq_d_g11_10
|
0.00079118
|
0.09668*
|
d_g11_40
|
0.0403499
|
0.04485**
|
sq_d_g11_40
|
-0.00351301
|
0.63846
|
d_g13_20
|
0.0829038
|
<0.0001***
|
sq_d_g13_20
|
-0.00134677
|
<0.0001***
|
d_g16_10
|
-0.242666
|
0.0001***
|
sq_d_g16_10
|
-0.0623318
|
0.20362
|
d_g16_20
|
0.0105142
|
0.07562*
|
sq_d_g16_20
|
0.00138323
|
0.43948
|
d_g16_61
|
-0.00644073
|
0.00374***
|
sq_d_g16_61
|
6.68319e-06
|
0.97157
|
d_g16_63
|
0.00897778
|
0.00010***
|
sq_d_g16_63
|
-8.59247e-05
|
0.65472
|
d_g17_30
|
0.0276779
|
0.01865**
|
sq_d_g17_30
|
0.0015655
|
0.62613
|
d_g17_50
|
-0.0864178
|
0.00040***
|
sq_d_g17_50
|
-0.00408133
|
0.87250
|
prefix ‘d_’ denotes a first difference;
prefix ‘sq_’ denotes quadratic function;
R-squared
|
0.938317
|
|
Adjusted R-squared
|
0.916977
|
F(64,185)
|
43.97158
|
|
P-value(F)
|
2.40e-84
|
Log-likelihood
|
147.3140
|
|
Akaike criterion
|
-164.6280
|
Autocorrelation of resid.-rho1
|
-0.183380
|
|
Durbin-Watson stat.
|
2.105666
|
White’s test statistics: LM = 150.617; p = P(Chi2(97)>150.617) = 0.000400138.
Wald’s test statistics: Chi2(25) = 589.421; p = 1.94013e-108.
Test statistics of the normal distribution of residuals: Chi2(2) = 15.2413; p = 0.000490232.
Residuals variance: 3.98777/(250-89) = 0.0247687
Total significance of group mean inequalities: F(24,161) = 0.869224 with p = 0.643085.
Breusch-Pagan test: LM = 2.39429 with p = prob(chi2(1)>2.39429) = 0.121779.
Source: own calculations.
Model 1 allowed to unveil several significant relationships between SDG indicators and GHG, and their directions. It also demonstrated that GHG dependent variable can be largely explained by other SDG indicators as the adjusted R-squared ratio amounted to 91.7%, while controlling for non-collinearity.
The final model specification was formulated in the third set of procedures (Model 2), taking into consideration that some SDG variables may have an intertemporal influence on the dependent variable. The analysed function was transformed into the following form for Model 2:

where:
d_GHGit—the dependent variable (GHG), a first difference;
d_Cit-1—set of explanatory variables (d_Cit), lagged by one time period – first differences;
l—the structural parameters for respective lagged explanatory variables in d_Cit-1 set (1,…, k);
j—the structural parameters for respective lagged explanatory variables in (d_Cit-1)2 set (1,…, k);
The description for other variables and parameters are the same as in Equation 1.
The results of modelling are presented in Table 2. Similarly to Model 1, the pooled OLS panel data specification was the most appropriate. Model 2, supplemented with lagged variables, is characterized by an increased number of statistically significant coefficients than in Model 1 and better fitness. Its adjusted R2 ratio amounts to 94.5%. The results are supplemented with the beta coefficient (see Table 2), which reflects the impact of each SDG variable on GHG with standardized regression coefficients.
Table 2. Model 2 – Final model specification of relationship between various SDG indicators and GHG
Pooled OLS; 225 observations; cross-section units = 25; time series length = 9. Robust standard errors (robust HAC).
|
Coefficient
|
p-value
|
beta
|
|
Coefficient
|
p-value
|
beta
|
constant
|
0.0214978
|
0.34007
|
|
|
|
|
|
d_g01_30
|
0.0005368
|
0.93517
|
.0019524
|
sq_d_g01_30
|
0.00138857
|
0.02420**
|
.0277964
|
d_g01_30_1
|
-0.0079146
|
0.12511
|
-.026969
|
|
|
|
|
d_g01_40
|
0.0427862
|
0.0001***
|
.1084634
|
sq_d_g01_40
|
-0.0019226
|
0.66687
|
-.0123167
|
d_g01_40_1
|
-0.0031148
|
0.75307
|
-.0082429
|
|
|
|
|
d_g01_50
|
0.00968102
|
0.0039***
|
.0387373
|
sq_d_g01_50
|
-0.00131342
|
0.03558**
|
-.0301537
|
d_g01_50_1
|
0.0055966
|
0.14294
|
.0239727
|
|
|
|
|
|
|
|
|
sq_d_g02_30
|
-0.00588381
|
0.00011***
|
-.0512086
|
d_g02_30_1
|
0.00207171
|
0.70425
|
.0050005
|
|
|
|
|
d_g02_60
|
0.00808001
|
0.25944
|
.014602
|
sq_d_g02_60
|
-0.0129188
|
0.00005***
|
-.049583
|
d_g02_60_1
|
-0.0020677
|
0.70533
|
-.0043846
|
sq_d_g02_60_1
|
0.00711953
|
0.00346***
|
-.049583
|
d_g03_10
|
0.212725
|
<0.001***
|
.1196816
|
sq_d_g03_10
|
-0.125533
|
0.05597*
|
-.0367531
|
d_g03_10_1
|
-0.0711299
|
0.04015**
|
-.0419137
|
|
|
|
|
d_g03_40
|
0.103913
|
0.0019***
|
.0913165
|
sq_d_g03_40
|
0.0527694
|
0.05127*
|
.0675324
|
d_g03_40_1
|
-0.158921
|
<0.001***
|
-.1511092
|
sq_d_g03_40_1
|
-0.0976825
|
0.00239***
|
-.1622791
|
d_g03_60
|
-0.0334946
|
0.0004***
|
-.0769306
|
sq_d_g03_60
|
-0.00365228
|
0.20097
|
-.0252522
|
d_g03_60_1
|
0.0165255
|
0.03852**
|
.0402346
|
sq_d_g03_60_1
|
0.00804934
|
0.00102***
|
.059166
|
d_g04_20
|
0.0133582
|
0.03534**
|
.0438812
|
sq_d_g04_20
|
-0.000842022
|
0.20313
|
-.020595
|
d_g04_20_1
|
-0.003585
|
0.48732
|
-.0113075
|
|
|
|
|
d_g04_50
|
-0.0008469
|
0.73115
|
-.0057281
|
sq_d_g04_50
|
0.000851912
|
0.06073*
|
.0330972
|
d_g04_50_1
|
0.0121304
|
<0.001***
|
.0940137
|
sq_d_g04_50_1
|
0.0014407
|
0.00004***
|
.0795058
|
d_g05_50B
|
0.0016739
|
0.11843
|
.0235079
|
sq_d_g05_50B
|
-0.000488471
|
<0.0001***
|
-.1232035
|
d_g05_50B_1
|
-0.0037041
|
0.0019***
|
-.0528348
|
sq_d_g05_50B_1
|
-0.000148788
|
0.03265**
|
-.0377075
|
d_g7_10
|
1.87457
|
<0.001***
|
.5739955
|
sq_d_g7_10
|
0.939905
|
0.06065*
|
.0947399
|
d_g7_10_1
|
0.341869
|
0.04576**
|
.1154462
|
sq_d_g7_10_1
|
0.706619
|
0.01049**
|
.0787687
|
d_g7_11
|
-0.0229329
|
0.92061
|
-.0042532
|
sq_d_g7_11
|
-2.16599
|
0.00773***
|
-.0789985
|
d_g7_11_1
|
-0.248706
|
0.27976
|
-.0535374
|
sq_d_g7_11_1
|
-1.08258
|
0.07508*
|
-.0485148
|
d_g07_30
|
-0.220636
|
<0.001***
|
-.1784729
|
|
|
|
|
d_g07_30_1
|
0.193596
|
<0.001***
|
.1587777
|
|
|
|
|
d_g07_40
|
-0.0109823
|
0.35506
|
-.0209629
|
sq_d_g07_40
|
0.019314
|
0.00014***
|
.0821092
|
d_g07_40_1
|
-0.0204672
|
0.02131**
|
-.0445095
|
|
|
|
|
d_g07_60
|
0.014755
|
0.0033***
|
.0680599
|
sq_d_g07_60
|
0.000395612
|
0.26861
|
.0234306
|
d_g07_60_1
|
-0.0074189
|
0.17997
|
-.0349169
|
sq_d_g07_60_1
|
-0.00156499
|
0.00010***
|
-.0930124
|
d_g08_10
|
0.0716126
|
0.0015***
|
.1241164
|
|
|
|
|
d_g08_10_1
|
0.0244871
|
0.13149
|
.049889
|
|
|
|
|
d_g8_11
|
0.0168965
|
0.01413**
|
.0561947
|
sq_d_g8_11
|
-0.00772239
|
<0.0001***
|
-.1600936
|
d_g8_11_1
|
0.0137362
|
0.0027***
|
.0598567
|
|
|
|
|
d_g09_10
|
-0.122425
|
0.04431**
|
-.0295195
|
|
|
|
|
d_g09_10_1
|
0.099181
|
0.26514
|
.0242854
|
sq_d_g09_10_1
|
-0.801495
|
0.00159***
|
-.0662743
|
|
|
|
|
sq_d_g09_20
|
-0.0113304
|
0.25777***
|
-.0162824
|
|
|
|
|
sq_d_g09_20_1
|
0.0208791
|
0.00153***
|
.0646229
|
d_g09_40
|
-0.0014259
|
0.01240**
|
-.0428871
|
|
|
|
|
d_g09_40_1
|
0.00143298
|
0.01201**
|
.0458976
|
|
|
|
|
d_g09_60
|
0.011069
|
0.0008***
|
.0481098
|
sq_d_g09_60
|
0.00174352
|
0.00007***
|
.0655903
|
d_g09_60_1
|
-0.0092516
|
0.0099***
|
-.042225
|
|
|
|
|
d_g10_20
|
0.0390113
|
0.02966**
|
.0404229
|
|
|
|
|
d_g10_20_1
|
-0.0580513
|
0.03940**
|
-.0681425
|
|
|
|
|
d_g10_30
|
-0.0225029
|
0.0002***
|
-.0947828
|
sq_d_g10_30
|
0.00303056
|
0.04433**
|
.0505597
|
d_g10_30_1
|
0.00132111
|
0.76785
|
.0053254
|
|
|
|
|
d_g11_10
|
-0.005789
|
0.05132*
|
-.0402902
|
|
|
|
|
d_g11_10_1
|
0.00319506
|
0.39883
|
.0204625
|
|
|
|
|
d_g11_40
|
0.0167087
|
0.29541
|
.0235965
|
sq_d_g11_40
|
-0.00575737
|
0.66552
|
-.0113789
|
d_g11_40_1
|
-0.0344304
|
0.03791**
|
-.0588767
|
sq_d_g11_40_1
|
-0.0176838
|
0.00212***
|
-.0722559
|
d_g13_20
|
0.0883594
|
<0.001***
|
.6953579
|
sq_d_g13_20
|
-0.000979757
|
0.00016***
|
-.13907
|
d_g13_20_1
|
0.00111988
|
0.77506
|
.0086292
|
sq_d_g13_20_1
|
0.000485864
|
0.01615**
|
.0678886
|
d_g16_10
|
-0.208839
|
0.0000***
|
-.1232576
|
sq_d_g16_10
|
0.0326988
|
0.51625
|
.0200664
|
d_g16_10_1
|
-0.1764
|
0.0051***
|
-.1154413
|
sq_d_g16_10_1
|
-0.170818
|
0.00049***
|
-.1256248
|
d_g16_20
|
0.010977
|
0.0005***
|
.0377855
|
sq_d_g16_20
|
-0.00282132
|
0.05567*
|
-.0317066
|
d_g16_20_1
|
0.0144532
|
0.0085***
|
.0557601
|
|
|
|
|
d_g16_61
|
-0.0058344
|
0.0049***
|
-.0703388
|
sq_d_g16_61
|
0.0000412
|
0.78585
|
.0045523
|
d_g16_61_1
|
0.0019702
|
0.28858
|
.0238866
|
|
|
|
|
d_g16_63
|
0.00444217
|
0.01276**
|
.0498204
|
sq_d_g16_63
|
-0.0000419
|
0.79648
|
-.0037437
|
d_g16_63_1
|
-0.000348
|
0.85283
|
-.0039468
|
|
|
|
|
d_g17_30
|
0.00321946
|
0.79928
|
.0051332
|
sq_d_g17_30
|
0.0186392
|
0.00223***
|
.0540069
|
d_g17_30_1
|
-0.0286345
|
0.0013***
|
-.0600336
|
|
|
|
|
d_g17_50
|
-0.044905
|
0.009***
|
-.0355851
|
sq_d_g17_50
|
0.0589688
|
0.00543***
|
.0360899
|
d_g17_50_1
|
-0.0295681
|
0.13733
|
-.0265848
|
|
|
|
|
prefix ‘d_’ denotes a first difference;
prefix ‘sq_’ denotes a quadratic function;
suffix ‘_1’ denotes a lagged variable (t-1).
R-squared
|
0.970136
|
|
Adjusted R-squared
|
0.944714
|
F(103,121)
|
38.16193
|
|
P-value(F)
|
1.55e-61
|
Log-likelihood
|
238.8089
|
|
Akaike criterion
|
-269.6178
|
Autocorrelation of resid.-rho1
|
-0.037202
|
|
Durbin-Watson stat.
|
1.817173
|
White’s test statistics: LM = 165.368; p = P(Chi2(169)>165.368) = 0.564593.
Wald’s test statistics: Chi2(25) = 59.032; p = 0.000141953.
Test statistics of the normal distribution of residuals: Chi2(2) = 1.47802; p = 0.477586.
Residuals variance: 1.36765/(225-128) = 0.0140995
Total significance of group mean inequalities: F(24,97) = 0.61844 with p = 0.910823.
Breusch-Pagan test: LM = 3.18764 with p = prob(chi2(1)>3.18764) = 0.0741969
Source: own calculations.
Since the mathematical formulas describing behaviour of individual variables are relatively complex, a helpful approach is to use graphical analysis for understanding their joint influence on the GHG variable. The marginal effects of selected variables, i.e. their isolated impact on the GHG variable, are depicted in Figure 1. The charts are constructed for the typical variation ranges of particular SDG indicators, in order to illustrate their most probable effect on the dependent variable. The charts show the variables with the largest beta as well as the variables, on which we focus in our analysis from the perspective of the implementation of socio-economic goals. The obtained results are analysed in the discussion section in a subsequent part of this article.
The variables SDG7.10 and SDG13.20 play the largest role in explaining the dependent variable according to the beta metric. Their behaviour, predicted by Model 2 (see Figure 1, chart A & B), is fully in line with theoretical expectations. This additionally validates the correctness of the obtained econometric results.
As the literature shows, the link between environmental indicators and socio-economic policies is often country-specific – see e.g. Bluszcz and Manowska (2020), Sheraz et al. (2021b). Thus, we tested a possible heterogeneous impact of independent variables from the geographic dimension. The countries were grouped into three distinctive categories—Western and Northern Europe (WNE: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Netherlands, Sweden, United Kingdom), Mediterranean and Southern Europe (MSE: Greece, Italy, Portugal, Spain) and Central and Eastern Europe (CEE: Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia). The variable describing the geographic characteristic is referred to as Cluster.
This group of procedures in the modelling is based on the design of the experiment concept. Their aim is to identify how possible interactions between Cluster andselected SDGi variables affect the behaviour of the GHG dependent variable. The methodology of this factorial analysis is widely described by Oehlert, 2010. In general, the following regression problem is solved (Equation 3 depicts a 2-way full factorial model with quadratic main effects and non-lagged variables):
where:
y—experiment yield; in our case the GHG variable;
xk—independent variables, in our case sustainable development goals indicators(d_Cit) and Cluster variables;
hk—coefficients for independent variables;
xk−1xk—interactions between k-1 and k-th variables;
hk−1,k—coefficients representing two factor interaction effects.
In this study, we limit ourselves to an analysis of only 2-way interactions of the given SDG indicator and the categorical Cluster variable. We isolate these interaction effects in such a way that we check each interaction separately instead of introducing them simultaneously in one joint equation. It means that several independent regressions are carried out to grasp the impact of geographical categories on a specific SDG indicator. The formulation of the relationship being modelled is presented in Equation 4.

where:
d_Čit andd_Čit-1—a selected independent variable (one per each regression) from the set of alld_Cit variables, for which the factorial effects with the Cluster variableare examined;
Cluster—thecategorical variable representing ageographic area to which an individual country belongs to; it is comprised of three categories (WNE, MSE, CEE);
hl—the structural parameters for a respective explanatory variable d_Čit and/ord_Čit-1; l = (1,2,3,4);
The description for other variables and parameters are the same as in Equation 1.
In this article, the analysis of geographical differentiation of a given variable impact on GHG was conducted for a small group of variables selected by the authors to deepen their view on the specific phenomena. Namely, it included following SDG indicators: 5.50B, 7.40, 8.10, 8.11, 9.10, 17.50. The full results of these models are not presented in this article due to their large size. The variables’ behaviour, illustrated by their marginal effects, is depicted in Figure 2. This should be treated as some supplementary evidence – indicating some promising observations but still at the early stage of research, specifically due to the relatively short time horizon of such an analysis. In short, two clusters delivered some statistically significant estimates. Namely, the separation of WNE and CEE cluster proved to be moderately significant for the following SDG indicators: 8.10, 8.11, 9.10, 17.50 (only WNE), 5.50B (only CEE).