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Mitigating energy poverty in the European union welfare states through renewable energy and technological innovation

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  • Mara, Eugenia Ramona

Abstract

This research analyzes the main drivers of energy poverty in European Union countries between 2003 and 2022. In the last few years, energy poverty has continued to rise, exacerbated by recent factors such as the war between Russia and Ukraine and inflation. Based on fully modified ordinary least squares (FMOLS), energy prices and import dependence are confirmed to be significant factors contributing to the expansion of energy poverty. This study also provides an individualized perspective on the determinants of energy poverty in each EU welfare state model, thus contributing to the implementation of tailored solutions. The solution for counteracting this negative phenomenon with multiple social implications can be founded on developing renewable energy sources and technological innovation. The governments of EU countries must prioritize the financing of technological innovation to increase green energy as representing a sustainable path for reducing energy poverty in the long term.

Suggested Citation

  • Mara, Eugenia Ramona, 2025. "Mitigating energy poverty in the European union welfare states through renewable energy and technological innovation," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 438-460.
    • Handle: RePEc:eee:ecanpo:v:86:y:2025:i:c:p:438-460
    DOI: 10.1016/j.eap.2025.03.026
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    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D60 - Microeconomics - - Welfare Economics - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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