INTERRELATIONS BETWEEN A LEVEL OF POVERTY AND FACTORS OF GREEN ECONOMICS ON THE EXAMPLE OF THE EU COUNTRIES

Abstract

The green economy is closely linked to the concept of sustainable development. Global challenges such as climate change and the current global economic crisis, revealed a new way of perceiving the need for economic development, which will be beneficial for everyone. According to this opinion sustainable development, or balanced progress in economic, social and environmental fields at the same time, - is becoming increasingly important. New opportunities for economic growth, which was created by these new environments, made the base of the green economy concept.
In our Article, we discussed attitudes of determination of a level of poverty and researching of green economics, analyzed mutual link and interaction between the factors of green economics and level of poverty in states of the European Union that enables ones to develop a kind of ecologically friendly development model. Particularly, we applied a correlative-regressive model, which gives us an opportunity, on top of macroeconomic factors, to detect an impact of factors of green economics on the level of poverty. Based on empiric analyze of the data obtained from the EU states we determined a negative interaction of a specific share of renewable energy and labor efficiency in relation to a risk of poverty. That is doubtlessly an additional argument which confirms a necessity of future development of green economics.

Keywords: green economics, sustainable development, poverty, natural resources (capital), human resources (capital), green investments.

JEL Classification: Q420