ENVIRONMENTAL DRIVERS OF PM2.5 CONCENTRATIONS IN THE EUROPEAN E5 NATIONS: THE ROLES OF INDUSTRIAL GROWTH, TRANSPORT SECTOR, URBAN EXPANSION, AND ENERGY USE

Rising concerns over urban air pollution and the inefficiencies of industrial and transport systems have intensified the need for integrated technological and policy solutions in densely populated European economies.This study examines the environmental effects of clean transportation, innovation, and governance in the European E5 nations (France, Germany, Italy, Poland, and the United Kingdom) from 1996 to 2023.Using the Method of Moments Quantile Regression (MMQR), supported by Feasible Generalized Least Squares (FGLS) and Fixed Effects (FE) models, environmental degradation is measured through PM₂.₅ concentrations.The results show that industrial growth consistently aggravates pollution, whereas environmental innovations and governance quality significantly reduce it.Moreover, governance moderates the adverse environmental impacts of transport emissions, indicating that stronger institutions enhance the effectiveness of technological advances.The study contributes by integrating governance, innovation interactions within a quantile framework, revealing heterogeneous effects across pollution levels, an aspect often neglected in prior research.The findings provide evidence-based insights for policymakers, emphasizing the synergistic role of technological progress and institutional strength in achieving sustainable environmental outcomes and supporting the European Green Deal and the UN Sustainable Development Goals (SDGs).