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Investigation of the Sensitivity of EU Countries to Temperature Anomalies in Terms of Economic and Technological Indicators

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Abstract

In this study, the interrelationships between global climate change and EU countries’ GDP, investments, R&D expenditures, innovations, and labor productivity indicators are discussed. Global temperature anomalies are adopted as an indicator of climate change and the relationsgip estimated with the panel vector autoregreesion (PVAR) approach for the period from 1996 to 2018. Results suggest that an increase in atmospheric temperature has negative effect on economic growth, investment, and labor productivity. However, an increase in atmospheric tempetrature increases patent applications by 0.4% in the long run. Moreover, while economic growth and investments trigger temperature anomalies, labor productivity has a negative effect on atmospheric temperature. The long-run coefficient estimation results are confirmed by analysis, and the existence of strong dynamic relationships between the variables is determined. Impulse–response graphs differ from these results and emphasize that the effects caused by shocks should be considered temperature anomalies and EU’s technological and economic developments.

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Notes

  1. Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Rep., Slovenia, Spain, and Sweden. Ireland was excluded as patent application data are not available.

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Authors and Affiliations

  1. Department of Aviation Management, Faculty of Aeronautics and Astronautics, Erciyes University, Kayseri, Turkey

    Alper Aslan

  2. Vocational School, Accounting and Tax Applications, Nisantaşi University, Istanbul, Turkey

    Buket Altinoz

  3. Faculty of Economics and Administrative Sciences, Mardin Artuklu University, Mardin, Turkey

    Melike Atay Polat

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  1. Alper Aslan
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  2. Buket Altinoz
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Correspondence to Alper Aslan.

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Aslan, A., Altinoz, B. & Polat, M.A. Investigation of the Sensitivity of EU Countries to Temperature Anomalies in Terms of Economic and Technological Indicators. J Knowl Econ (2023). https://doi.org/10.1007/s13132-023-01291-z

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