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THE EFFECT OF GDP GROWTH ON ENVIRONMENTAL PROTECTION EXPENDITURE IN ROMANIA
Abstract
A current global concern is environmental protection. Many of the human activities affect the environment and implicitly have economic repercussions. Economic and social development must be achieved so that economic activities cause as little damage to the environment as possible. The financial amounts allocated depend on the economic situation of each country. Expenditures for environmental protection represent an indicator regarding the actions undertaken by economic agents and the public administration concerning the state of the environment. The purpose of the paper was to evaluate the environmental protection expenditure of different groups of environmental service providers and their influence on the evolution of GDP, in the period 2010-2018 in Romania. The indicators taken into account were total expenditures for environmental protection by specialized producers, non-specialized producers and public administration, as well as environmental taxes on various activities, the share of environmental taxes in GDP, but also the share of environmental expenditures in GDP. During the period analyzed, public environmental expenditures increased from 18.4 million lei in 2010 to 20.8 million lei in 2018. The analysis of environmental expenditures indicates an increase in public efforts for environmental protection. The strongest correlation is between GDP and specialized producers: r=-0.752, meaning a strong negative correlation and an inversely proportional relationship between economic growth and environmental protection expenditures.
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