Management Theory and Studies for Rural Business and Infrastructure Development, Volume 27

The environmetal kuznets curve hypothesis as theoretical aproach in renewable energy promotion in Latvia

Kaspars Naglis-Liepa


The Environmental Kuznets Curve (EKC) hypothesis is still a controversial conception of scientific thought which, nevertheless, does not make economic and environmental researchers indifferent. A similarity exists between the EKC hypothesis and the EU sustainable development policy.
Latvia as an EU member state has accepted the strategic goals requiring a reduction in the emission of greenhouse gases (GHG). Owing to the base year selected for the Kyoto Protocol, Latvia faces no difficulties in achieving these goals. However, Latvia might face difficulties due to the ambitions goal to increase its consumption of renewable energy, taking into account the synergy of
climate change and energy sectors in EU policy. Difficulties can be caused by the financial inability of the demand side and the political indecision to promote the inclusion of costs of negative externalities in the economic system and to sharply increase the proportion of consumption of renewable energy.

Keyword(s): greenhouse gas, economies in transition, household expenditure structure.

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.