Economic Growth and Transport Emissions: Testing the Environmental Kuznets Curve in Austria and the Netherlands

This study examines the relationship between economic growth and transport-related CO₂ emissions in Austria and the Netherlands using the Environmental Kuznets Curve (EKC) framework. The analysis reveals an inverted U-shaped relationship, where emissions initially rise with GDP (PPP) but decline after reaching a certain income threshold. Austria’s emissions show a gradual decline, reflecting its reliance on renewable energy, while the Netherlands exhibits a sharper rise and fall due to urban density and road freight reliance. These findings highlight the potential for sustainable growth, emphasizing the need for targeted policies to reduce transport emissions through green technologies and infrastructure investments.