The study looked at how economic growth, electricity use, carbon emissions, and urbanization are connected in Hungary from 1974 to 2014. They used a three-step model to analyze the data. The results showed that electricity use and urbanization have a positive impact on carbon emissions in the long run. There is a two-way relationship between electricity use and economic growth, as well as between carbon emissions and economic growth. This means that using more electricity and growing the economy can lead to more carbon emissions. The study suggests that coordinating economic and energy policies is important for sustainable development in Hungary.