Abstract

This study analyses the relationships between economic development, environmental investments, and greenhouse gas emissions in the European Union for the period 2008-2022. Using correlation and regression analysis of data from Eurostat, the study assesses the impact of environmental protection expenditure and gross domestic product on greenhouse gas emissions. The results reveal a stable upward trend in environmental protection expenditure, especially in recent years, reflecting the European Union's growing commitment to sustainable development. At the same time, greenhouse gas emissions show an overall downward trend, with the sharpest decline between 2019 and 2020, likely due to the impact of the coronavirus disease pandemic. The correlation analysis confirms a significant inverse relationship between environmental investments and emissions, demonstrating the positive effect of "green" spending on reducing the carbon footprint. An important observation is that in many years, environmental expenditure grows at a faster rate than the European Union's gross domestic product, emphasizing the increased commitment to environmental issues even in conditions of economic growth. The regression analysis shows a strong relationship between the predictors (gross domestic product and environmental expenditure) and greenhouse gas emissions. Despite the expectation that economic growth would increase emissions, the results show that effective measures and technologies for reducing the carbon footprint in the European Union mitigate this effect. Based on these findings, the study proposes strategies for promoting investments in clean technologies, integrating environmental goals into economic policies, intensifying research and innovation, raising public awareness, and strengthening international cooperation.