Evolution of Romania’s Economic Structure and Environment Degradation – An Assessment Through LMDI Decomposition Approach

PURPOSE: This paper studies the relationships between air pollutants (PM(10), PM(2.5), N(2)O) and different diseases (tumors, skin and respiratory) and the factors influencing air pollutant emissions in Romania. METHODS: The methods are Toda-Yamamoto procedure of non-causality Granger test, grey relational analysis and logarithmic mean Divisia index method (LMDI). RESULTS: Air pollutants intensities dropped significantly over 2008–2017 period due to structural changes. The only economic activity that showed an increase both in volume and intensity of air pollutants, despite a downward trend of farming activities output is agriculture. Technology improvements play a significant role in mitigation of PM(2.5) emissions and a moderate role in mitigation of PM(10) emissions. For N(2)O emissions technology used contributed to an increase of N(2)O intensities. CONCLUSION: Health policy makers should address the issue of technology improvements and mitigation of agriculture emissions to improve health of individuals and air quality.