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Green hydrogen impact on economic growth: A cross-sectional analysis of 29 European countries

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  • Sarsar, Lamiae

Abstract

This study investigates the effect of hydrogen-based renewable energies on economic growth in 29 European countries, utilizing the Cob-Douglas production function and employing the RWLS estimation method. The findings reveal a substantial positive association between total hydrogen energy consumption and economic growth, with a 1 % increase corresponding to a 0.168667 % rise in GDP. Furthermore, the study differentiates the impacts of green and non-green hydrogen consumption, highlighting the stronger effect of green hydrogen on economic growth. Our study's policy implications advocate for a comprehensive and strategic approach to harnessing the economic potential of hydrogen-based renewable energies. By aligning policies with the findings of our research, governments and stakeholders can pave the way for a more sustainable and economically vibrant future, and should promote green hydrogen initiatives for enhanced energy security, environmental sustainability, and economic development.

Suggested Citation

  • Sarsar, Lamiae, 2025. "Green hydrogen impact on economic growth: A cross-sectional analysis of 29 European countries," Renewable Energy, Elsevier, vol. 246(C).
    • Handle: RePEc:eee:renene:v:246:y:2025:i:c:s0960148125005609
    DOI: 10.1016/j.renene.2025.122898
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    More about this item

    Keywords

    Hydrogen consumption; Green hydrogen; Renewable energy; Energy transition; Economic growth;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies

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