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The contribution of renewable energy sector value added to the national economic development in Denmark: an empirical analysis

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  • Dubinskii Oleg

    (Faculty of Business, Management and Economics, University of Latvia, Aspazijas bulvāris 5, Rīga, 1050, Latvia.)

Abstract

Examining the relationship between sustainability and economic development was covered by research over the past decades. The initial goal of the present research is to evaluate the contribution of renewable energy sector value added to the national economic development in Denmark. The research tasks of this study include assessment of carbon dioxide allowances and environmental taxation as well as the effect of other factors in terms of their contribution to the economic growth. The application of the regression analysis in order to examine the relationship between renewable energy industry and national economic development in Denmark shows that the increasing of renewable energy value added leads to the sizeable expansion of the gross domestic product. From the environmental-economic standpoint this is presumably the first research to make unambiguous conclusion, that proves significance of renewable energy value added for economic development in Denmark. Likewise, the results of the present study prove that expanding usage of carbon dioxide (CO₂) allowances in Denmark leads to quite considerable increase of the gross domestic product. Besides that, this study provided evidence regarding positive and statistically significant impact of the other factors on the economic growth.

Suggested Citation

  • Dubinskii Oleg, 2024. "The contribution of renewable energy sector value added to the national economic development in Denmark: an empirical analysis," Review of Economic Perspectives, Sciendo, vol. 24(1), pages 37-56, March.
    • Handle: RePEc:vrs:reoecp:v:24:y:2024:i:1:p:37-56:n:3
    DOI: 10.2478/revecp-2024-0003
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    Keywords

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    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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