Dynamic panel model in bioeconomy modeling

Abstract

Currently, technological development is driven by the search for solutions to prevent climate change and environmental degradation, increase energy efficiency, and meet societal needs in relation to avoiding conflict while navigating the implementation of current and future needs. Many of the solutions come from the rapid development of the bioeconomy. The aim of this article is to determine the impact of bioeconomy variables on economic growth in 27 EU countries. The research goal of the paper is based on the estimation of dynamic panel models using the generalized method of moments (GMM). The following set of variables used in the dynamic panel model had a positive impact on economic growth in the EU-27 countries: greenhouse gases by sector: agriculture, circular material use rate, recycling rate of packaging waste by type of packaging – plastic packaging, recycling rate of packaging waste by type of packaging – wooden packaging. Three variables were shown to have a negative impact on economic growth, namely: recycling rate of municipal waste, recycling rate of e-waste, trade-in recyclable raw materials – exports extra-EU.