IDEAS home Printed from https://ideas.repec.org/a/aes/amfeco/v25y2023i63p380.html
   My bibliography  Save this article

Drivers for Renewable Energy Consumption in European Union Countries. A Panel Data Insight

Author

Listed:
  • Iulia Lupu

    (“Victor Slavescu” Centre for Financial and Monetary Research, Bucharest)

  • Gheorghe Hurduzeu

    (Bucharest University of Economic Studies, Romania)

  • Radu Lupu

    (Bucharest University of Economic Studies, Romania)

  • Maria-Floriana Popescu

    (Institute of Agricultural Economics, Bucharest, Romania)

  • Camelia Gavrilescu

    (Institute for Economic Forecasting, Bucharest, Romania)

Abstract

Renewable energy sources play an essential role in the broader context of environmental protection and the fight against the effects of climate change. At the European level, the need to increase the proportion of energy generated by renewable resources is formalised through the Renewable Energy Directive (2009/28/EC), which was updated in 2018 and became legally mandatory starting from June 2021. The European Green Deal, adopted in 2019, highlights the role of energy generated from renewable sources in fulfilling more complex objectives recognised at the international level. Within this context, in this study, we investigate the link between renewable energy consumption by sector and other critical indicators in the energy sector, representing energy productivity, intensity, efficiency, import dependency, research and development (R&D) allocations, and energy-related tax revenues, for the period 2004-2020. We employed a panel data approach for European Union member states, Central and Eastern Europe and Western Europe countries separately. The empirical results confirm the different conditions for the two groups of countries, suggesting the possibility of designing specific energy policies. We emphasise the positive role of R&D in both categories of member states.

Suggested Citation

  • Iulia Lupu & Gheorghe Hurduzeu & Radu Lupu & Maria-Floriana Popescu & Camelia Gavrilescu, 2023. "Drivers for Renewable Energy Consumption in European Union Countries. A Panel Data Insight," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(63), pages 380-380, April.
    • Handle: RePEc:aes:amfeco:v:25:y:2023:i:63:p:380
    as

    Download full text from publisher

    File URL: http://www.amfiteatrueconomic.ro/temp/Article_3203.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bourcet, Clémence, 2020. "Empirical determinants of renewable energy deployment: A systematic literature review," Energy Economics, Elsevier, vol. 85(C).
    2. Boubaker, Sabri & Omri, Anis, 2022. "How does renewable energy contribute to the growth versus environment debate?," Resources Policy, Elsevier, vol. 79(C).
    3. Radu Lupu & Adrian Cantemir Călin & Cristina Georgiana Zeldea & Iulia Lupu, 2021. "Systemic Risk Spillovers in the European Energy Sector," Energies, MDPI, vol. 14(19), pages 1-23, October.
    4. Sachan, Anshita & Sahu, Udit Kumar & Pradhan, Ashis Kumar & Thomas, Ronny, 2023. "Examining the drivers of renewable energy consumption: Evidence from BRICS nations," Renewable Energy, Elsevier, vol. 202(C), pages 1402-1411.
    5. Gheorghe Hurduzeu & Iulia Lupu & Radu Lupu & Radu Ion Filip, 2022. "The Interplay between Digitalization and Competitiveness: Evidence from European Countries," Societies, MDPI, vol. 12(6), pages 1-12, November.
    6. Marra, Alessandro & Colantonio, Emiliano, 2021. "The path to renewable energy consumption in the European Union through drivers and barriers: A panel vector autoregressive approach," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    7. Vasile Dinu, 2016. "The constraints to the economic development in the former socialist EU countries from the Central and Eastern Europe," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(43), pages 499-499, August.
    8. Dumitru Miron & Dragos Seuleanu & Cezar Radu Cojocariu & Laura Benchea, 2019. "The European Model of Development Faced with the Quaternary Sector Emergence Test," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(S13), pages 743-743, November.
    9. Wang, Wei & Rehman, Mubeen Abdur & Fahad, Shah, 2022. "The dynamic influence of renewable energy, trade openness, and industrialization on the sustainable environment in G-7 economies," Renewable Energy, Elsevier, vol. 198(C), pages 484-491.
    10. Dogan, Eyup & Hodžić, Sabina & Šikić, Tanja Fatur, 2023. "Do energy and environmental taxes stimulate or inhibit renewable energy deployment in the European Union?," Renewable Energy, Elsevier, vol. 202(C), pages 1138-1145.
    11. Marques, António C. & Fuinhas, José A. & Pires Manso, J.R., 2010. "Motivations driving renewable energy in European countries: A panel data approach," Energy Policy, Elsevier, vol. 38(11), pages 6877-6885, November.
    12. Alola, Andrew Adewale & Olanipekun, Ifedolapo Olabisi & Shah, Muhammad Ibrahim, 2023. "Examining the drivers of alternative energy in leading energy sustainable economies: The trilemma of energy efficiency, energy intensity and renewables expenses," Renewable Energy, Elsevier, vol. 202(C), pages 1190-1197.
    13. Przychodzen, Wojciech & Przychodzen, Justyna, 2020. "Determinants of renewable energy production in transition economies: A panel data approach," Energy, Elsevier, vol. 191(C).
    14. Aguirre, Mariana & Ibikunle, Gbenga, 2014. "Determinants of renewable energy growth: A global sample analysis," Energy Policy, Elsevier, vol. 69(C), pages 374-384.
    15. Ionut PURICA & Lucian Liviu ALBU & Marioara IORDAN & Sorin Dinu & Eugen BANCHEŞ & Ilie TURCU & Daniela DIACONU, 2020. "Long Term Assessment of Nuclear Technology Penetration Using Message – The Case of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 169-181, September.
    16. Peter, Jakob & Elberg, Christina & Bettzüge, Marc Oliver & Höffler, Felix, 2015. "Germany's Wind and Solar Deployment 1991 - 2015," EWI Working Papers 2015-8, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    17. Omri, Anis & Nguyen, Duc Khuong, 2014. "On the determinants of renewable energy consumption: International evidence," Energy, Elsevier, vol. 72(C), pages 554-560.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ibrahiem, Dalia M. & Hanafy, Shaimaa A., 2021. "Do energy security and environmental quality contribute to renewable energy? The role of trade openness and energy use in North African countries," Renewable Energy, Elsevier, vol. 179(C), pages 667-678.
    2. Dogan, Eyup & Chishti, Muhammad Zubair & Karimi Alavijeh, Nooshin & Tzeremes, Panayiotis, 2022. "The roles of technology and Kyoto Protocol in energy transition towards COP26 targets: Evidence from the novel GMM-PVAR approach for G-7 countries," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    3. Alola, Andrew Adewale & Olanipekun, Ifedolapo Olabisi & Shah, Muhammad Ibrahim, 2023. "Examining the drivers of alternative energy in leading energy sustainable economies: The trilemma of energy efficiency, energy intensity and renewables expenses," Renewable Energy, Elsevier, vol. 202(C), pages 1190-1197.
    4. Borozan, Dj, 2022. "Asymmetric effects of policy uncertainty on renewable energy consumption in G7 countries," Renewable Energy, Elsevier, vol. 189(C), pages 412-420.
    5. Liu, Ying & Feng, Chao, 2023. "Promoting renewable energy through national energy legislation," Energy Economics, Elsevier, vol. 118(C).
    6. Carfora, A. & Pansini, R.V. & Scandurra, G., 2021. "The role of environmental taxes and public policies in supporting RES investments in EU countries: Barriers and mimicking effects," Energy Policy, Elsevier, vol. 149(C).
    7. Atif Maqbool Khan & Jacek Kwiatkowski & Magdalena Osińska & Marcin Błażejowski, 2021. "Factors of Renewable Energy Consumption in the European Countries—The Bayesian Averaging Classical Estimates Approach," Energies, MDPI, vol. 14(22), pages 1-24, November.
    8. Jeetoo, Jamiil, 2022. "Spatial interaction effect in renewable energy consumption in sub-Saharan Africa," Renewable Energy, Elsevier, vol. 190(C), pages 148-155.
    9. Amine Lahiani & Sinha Avik & Muhammad Shahbaz, 2018. "Renewable energy consumption, income, CO2 emissions and oil prices in G7 countries: The importance of asymmetries," Post-Print hal-03677233, HAL.
    10. Alola, Andrew Adewale & Akadiri, Seyi Saint, 2021. "Clean energy development in the United States amidst augmented socioeconomic aspects and country-specific policies," Renewable Energy, Elsevier, vol. 169(C), pages 221-230.
    11. Zheng, Shuhong & Yang, Juan & Yu, Shiwei, 2021. "How renewable energy technological innovation promotes renewable power generation: Evidence from China's provincial panel data," Renewable Energy, Elsevier, vol. 177(C), pages 1394-1407.
    12. Shang, Yunfeng & Han, Ding & Gozgor, Giray & Mahalik, Mantu Kumar & Sahoo, Bimal Kishore, 2022. "The impact of climate policy uncertainty on renewable and non-renewable energy demand in the United States," Renewable Energy, Elsevier, vol. 197(C), pages 654-667.
    13. Lin, Boqiang & Omoju, Oluwasola E. & Okonkwo, Jennifer U., 2016. "Factors influencing renewable electricity consumption in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 687-696.
    14. Mohsen Khezri & Mohammad Sharif Karimi & Jamal Mamkhezri & Reza Ghazal & Larry Blank, 2022. "Assessing the Impact of Selected Determinants on Renewable Energy Sources in the Electricity Mix: The Case of ASEAN Countries," Energies, MDPI, vol. 15(13), pages 1-15, June.
    15. Somoye, Oluwatoyin Abidemi & Ozdeser, Huseyin & Seraj, Mehdi, 2022. "Modeling the determinants of renewable energy consumption in Nigeria: Evidence from Autoregressive Distributed Lagged in error correction approach," Renewable Energy, Elsevier, vol. 190(C), pages 606-616.
    16. Escoffier, Margaux & Hache, Emmanuel & Mignon, Valérie & Paris, Anthony, 2021. "Determinants of solar photovoltaic deployment in the electricity mix: Do oil prices really matter?," Energy Economics, Elsevier, vol. 97(C).
    17. Lu, Zhou & Gozgor, Giray & Mahalik, Mantu Kumar & Padhan, Hemachandra & Yan, Cheng, 2022. "Welfare gains from international trade and renewable energy demand: Evidence from the OECD countries," Energy Economics, Elsevier, vol. 112(C).
    18. Yeboah Asuamah, Samuel, 2015. "Government activities and fossil fuel consumption in Ghana," MPRA Paper 89549, University Library of Munich, Germany, revised 15 Aug 2018.
    19. Mac Domhnaill, Ciarán & Ryan, Lisa, 2020. "Towards renewable electricity in Europe: Revisiting the determinants of renewable electricity in the European Union," Renewable Energy, Elsevier, vol. 154(C), pages 955-965.
    20. Ankrah, Isaac & Lin, Boqiang, 2020. "Renewable energy development in Ghana: Beyond potentials and commitment," Energy, Elsevier, vol. 198(C).

    More about this item

    Keywords

    renewable energy; energy policy; European Union; panel data.;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aes:amfeco:v:25:y:2023:i:63:p:380. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentin Dumitru (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.