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Renewable Energy and Economic Growth: Evidence from European Countries

Author

Listed:
  • Stamatios Ntanos

    () (Department of Business Administration, School of Business, Economics and Social Sciences, University of West Attica, 12244 Egaleo, Greece)

  • Michalis Skordoulis

    () (Department of Forestry and Management of the Environment and Natural Resources, School of Agricultural and Forestry Sciences, Democritus University of Thrace, 68200 Orestiada, Greece)

  • Grigorios Kyriakopoulos

    () (School of Electrical and Computer Engineering, National Technical University of Athens, 15780 Zografou, Greece)

  • Garyfallos Arabatzis

    () (Department of Forestry and Management of the Environment and Natural Resources, School of Agricultural and Forestry Sciences, Democritus University of Thrace, 68200 Orestiada, Greece)

  • Miltiadis Chalikias

    () (Department of Tourism Management, School of Business, Economics and Social Sciences, University of West Attica, 12244 Egaleo, Greece)

  • Spyros Galatsidas

    () (Department of Forestry and Management of the Environment and Natural Resources, School of Agricultural and Forestry Sciences, Democritus University of Thrace, 68200 Orestiada, Greece)

  • Athanasios Batzios

    () (Department of Agricultural Economics, School of Agriculture, Faculty of Agriculture, Forestry and Natural Environment, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Apostolia Katsarou

    () (Department of Education Sciences in Early Childhood, Democritus University of Thrace, 68100 Alexandroupolis, Greece)

Abstract

This paper aims at examining the relationship between energy consumption deriving from renewable energy sources, and countries’ economic growth expressed as GDP per capita concerning 25 European countries. The used dataset involves European countries’ data for the period from 2007 to 2016. The statistical analysis is based on descriptive statistics, cluster analysis, and autoregressive distributed lag (ARDL), and reveals that all variables are related; this suggests a correlation between the dependent variable of GDP and the independents of renewable energy sources (RES) and Non-RES energy consumption, gross fixed capital formation, and labor force in the long-run. Furthermore, the results show that there is a higher correlation between RES’ consumption and the economic growth of countries of higher GDP than with those of lower GDP. The obtained results are consistent with other papers reviewed in this study.

Suggested Citation

  • Stamatios Ntanos & Michalis Skordoulis & Grigorios Kyriakopoulos & Garyfallos Arabatzis & Miltiadis Chalikias & Spyros Galatsidas & Athanasios Batzios & Apostolia Katsarou, 2018. "Renewable Energy and Economic Growth: Evidence from European Countries," Sustainability, MDPI, Open Access Journal, vol. 10(8), pages 1-13, July.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2626-:d:160100
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    References listed on IDEAS

    as
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    Cited by:

    1. Maolin Cheng & Bin Liu, 2019. "Analysis on the Influence of China’s Energy Consumption on Economic Growth," Sustainability, MDPI, Open Access Journal, vol. 11(14), pages 1-25, July.
    2. Yuriy Bilan & Dalia Streimikiene & Tetyana Vasylieva & Oleksii Lyulyov & Tetyana Pimonenko & Anatolii Pavlyk, 2019. "Linking between Renewable Energy, CO 2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership," Sustainability, MDPI, Open Access Journal, vol. 11(6), pages 1-16, March.
    3. Uygar Ozesmi, 2019. "The Prosumer Economy -- Being Like a Forest," Papers 1903.07615, arXiv.org.
    4. Halil Emre Akbaş & Seda Canikli, 2018. "Determinants of Voluntary Greenhouse Gas Emission Disclosure: An Empirical Investigation on Turkish Firms," Sustainability, MDPI, Open Access Journal, vol. 11(1), pages 1-24, December.
    5. Mihaela Simionescu & Yuriy Bilan & Emília Krajňáková & Dalia Streimikiene & Stanisław Gędek, 2019. "Renewable Energy in the Electricity Sector and GDP per Capita in the European Union," Energies, MDPI, Open Access Journal, vol. 12(13), pages 1-15, June.
    6. Evgeny Lisin & Wadim Strielkowski & Veronika Chernova & Alena Fomina, 2018. "Assessment of the Territorial Energy Security in the Context of Energy Systems Integration," Energies, MDPI, Open Access Journal, vol. 11(12), pages 1-14, November.
    7. Jiancheng Qin & Hui Tao & Chinhsien Cheng & Karthikeyan Brindha & Minjin Zhan & Jianli Ding & Guijin Mu, 2020. "Analysis of Factors Influencing Carbon Emissions in the Energy Base, Xinjiang Autonomous Region, China," Sustainability, MDPI, Open Access Journal, vol. 12(3), pages 1-15, February.
    8. Evgeny Lisin & Galina Kurdiukova & Pavel Okley & Veronika Chernova, 2019. "Efficient Methods of Market Pricing in Power Industry within the Context of System Integration of Renewable Energy Sources," Energies, MDPI, Open Access Journal, vol. 12(17), pages 1-16, August.
    9. Shining Zhang & Fang Yang & Changyi Liu & Xing Chen & Xin Tan & Yuanbing Zhou & Fei Guo & Weiyi Jiang, 2020. "Study on Global Industrialization and Industry Emission to Achieve the 2 °C Goal Based on MESSAGE Model and LMDI Approach," Energies, MDPI, Open Access Journal, vol. 13(4), pages 1-21, February.
    10. Croce, Antonello Ignazio & Musolino, Giuseppe & Rindone, Corrado & Vitetta, Antonino, 2019. "Sustainable mobility and energy resources: A quantitative assessment of transport services with electrical vehicles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    11. Alina Zaharia & Maria Claudia Diaconeasa & Laura Brad & Georgiana-Raluca Lădaru & Corina Ioanăș, 2019. "Factors Influencing Energy Consumption in the Context of Sustainable Development," Sustainability, MDPI, Open Access Journal, vol. 11(15), pages 1-28, August.
    12. Stamatios Ntanos & Grigorios Kyriakopoulos & Michalis Skordoulis & Miltiadis Chalikias & Garyfallos Arabatzis, 2019. "An Application of the New Environmental Paradigm (NEP) Scale in a Greek Context," Energies, MDPI, Open Access Journal, vol. 12(2), pages 1-18, January.
    13. Konstantinos G. Aravossis & Vasilis C. Kapsalis & Grigorios L. Kyriakopoulos & Theofanis G. Xouleis, 2019. "Development of a Holistic Assessment Framework for Industrial Organizations," Sustainability, MDPI, Open Access Journal, vol. 11(14), pages 1-24, July.
    14. Fangming Xie & Chuanzhe Liu & Huiying Chen & Ning Wang, 2018. "Threshold Effects of New Energy Consumption Transformation on Economic Growth," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-14, November.
    15. Pinglin He & Jing Ning & Zhongfu Yu & Hao Xiong & Huayu Shen & Hui Jin, 2019. "Can Environmental Tax Policy Really Help to Reduce Pollutant Emissions? An Empirical Study of a Panel ARDL Model Based on OECD Countries and China," Sustainability, MDPI, Open Access Journal, vol. 11(16), pages 1-32, August.
    16. Gokhan Karhan, 2019. "Does Renewable Energy Increase Growth? Evidence from EU-19 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 341-346.
    17. Hye-Jeong Lee & Sung-Yoon Huh & Seung-Hoon Yoo, 2018. "Social Preferences for Small-Scale Solar Photovoltaic Power Plants in South Korea: A Choice Experiment Study," Sustainability, MDPI, Open Access Journal, vol. 10(10), pages 1-15, October.
    18. Blaženka Popović & Svjetlana Janković Šoja & Tamara Paunović & Radojka Maletić, 2019. "Evaluation of Sustainable Development Management in EU Countries," Sustainability, MDPI, Open Access Journal, vol. 11(24), pages 1-16, December.

    More about this item

    Keywords

    renewable energy; energy consumption; Gross Domestic Product; economic growth;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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