Research on the Dependence of the Level of Economic Growth on the Consumption of Materials and Energy in Selected European Union Countries

Abstract

The article investigates the problem of decoupling the economic growth from the level of materials consumption DMC (Domestic Material Consumption) and from the level of FEC (Final Energy Consumption [million tonnes of oil equivalent TOE]). The research on the problem of decoupling the economic growth from the level of consumption of DMC materials and from the level of FEC and import was carried out using panel data techniques. The analysis was carried out for selected countries, i.e. Germany, France, the Czech Republic and Poland in the years 2006–2015 and the data were collected from the Eurostat database. The data from 2006 were assumed in the analysis as the base year and subsequent years are a reference to the base year. Reducing consumption of raw materials and energy while maintaining a stable level of economic growth is a strategic priority of the European Union, because in this way it is possible to lower the costs of functioning of the future economy, but it also lowers the pressure on the natural environment. The aim of the article is to examine the dependencies that occur between the GDP growth rate and the growth rate of imports of goods and services, while reducing energy consumption and a steady increase in the consumption of materials. The study of the relationship between the above-mentioned macroeconomic indicators is based on determining whether one variable is the cause of the other variable in Granger's sense. The study was based on data concerning the economies of Germany, France, the Czech Republic and Poland. The influence of foreign trade on economic growth can take place on many levels – indirect impact using scientific and technical knowledge, transfer of modern technologies and finally with the help of foreign direct investment. This work will describe the mechanism of impact of imports on GDP, while analyzing energy and materials consumption.