Determinants of the renewable energy consumption in the European Union: An analysis between eu-15 and the 13 new members
Keywords:
Renewable energy, Economic factors, Social factors, European UnionAbstract
Climate change is a major global concern and is closely related to the strategies used for energy generation and consumption. Thus, the search for renewable energy sources has grown exponentially in recent decades. At the level of the European Union (EU) it was established that by 2020 the percentage of renewable energy should cover 20 per cent of total energy consumption and by 2030, at least 32 per cent. In this sense, the objective of the study was to analyze the effect of economic and social factors on the consumption of renewable energies in EU countries, considering the EU-15 group and the 13 others that incorporated from 2004, for the years of 1995 and 2018. Through the panel data technique, models were estimated, which allow us to conclude that the behavior of the variables is different when considering the entire block, the EU-15 group and the group of 13 new ones, with respect to renewable energy consumption. To meet the 2030 target, it is necessary to take into account the heterogeneity among countries and to elaborate plans that combine economic and social factors.
Downloads
References
Akizu-Gardoki, O., Bueno, G., Wiedmann, T., Lopez-Guede, J. M., Arto, I., Hernandez, P., & Moran, D. (2018). Decoupling between human development and energy consumption within footprint accounts. Journal of Cleaner Production, 202, 1145–1157. https://doi.org/10.1016/J.JCLEPRO.2018.08.235
Al-Mulali, U., Fereidouni, H. G., Lee, J. Y., & Sab, C. N. B. C. (2013). Examining the bi-directional long run relationship between renewable energy consumption and GDP growth. Renewable and Sustainable Energy Reviews, 22, 209–222. https://doi.org/10.1016/j.rser.2013.02.005
Amri, F. (2017). Intercourse across economic growth, trade and renewable energy consumption in developing and developed countries. Renewable and Sustainable Energy Reviews, 69, 527–534. https://doi.org/10.1016/J.RSER.2016.11.230
Amri, F. (2019). Renewable and non-renewable categories of energy consumption and trade: Do the development degree and the industrialization degree matter? Energy, 173, 374–383. https://doi.org/10.1016/j.energy.2019.02.114
Amuakwa-Mensah, F., & Näsström, E. (2022). Role of banking sector performance in renewable energy consumption. Applied Energy, 306(118023), 1–22. https://doi.org/10.1016/J.APENERGY.2021.118023
Anton, S. G., & Afloarei Nucu, A. E. (2020). The effect of financial development on renewable energy consumption. A panel data approach. Renewable Energy, 147, 330–338. https://doi.org/10.1016/j.renene.2019.09.005
Apergis, N., & Payne, J. E. (2010a). Renewable energy consumption and growth in Eurasia. Energy Economics, 32(6), 1392–1397. https://doi.org/10.1016/j.eneco.2010.06.001
Apergis, N., & Payne, J. E. (2010b). Renewable energy consumption and economic growth: Evidence from a panel of OECD countries. Energy Policy, 38(1), 656–660. https://doi.org/10.1016/j.enpol.2009.09.002
Apergis, N., & Payne, J. E. (2011). On the causal dynamics between renewable and non-renewable energy consumption and economic growth in developed and developing countries. Energy Systems, 2(3–4), 299–312. https://doi.org/10.1007/s12667-011-0037-6
Apergis, N., & Payne, J. E. (2012). Renewable and non-renewable energy consumption-growth nexus: Evidence from a panel error correction model. Energy Economics, 34(3), 733–738. https://doi.org/10.1016/j.eneco.2011.04.007
Apergis, N., & Payne, J. E. (2014). Renewable energy, output, CO2 emissions, and fossil fuel prices in Central America: Evidence from a nonlinear panel smooth transition vector error correction model. Energy Economics, 42, 226–232. https://doi.org/10.1016/j.eneco.2014.01.003
Apergis, N., Payne, J. E., Menyah, K., & Wolde-Rufael, Y. (2010). On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth. Ecological Economics, 69(11), 2255–2260. https://doi.org/10.1016/j.ecolecon.2010.06.014
Arellano, M., & Bover, O. (1990). La econometria de datos de panel. Investigaciones Económicas (Segunda Época), XIV(1), 3–45. https://www.cemfi.es/˜arellano/arellano-bover-inv-econ-1990.pdf
Ariu, A., Docquier, F., & Squicciarini, M. P. (2016). Governance quality and net migration flows. Regional Science and Urban Economics, 60, 238–248. https://doi.org/10.1016/J.REGSCIURBECO.2016.07.006
Asongu, S. A., & Nwachukwu, J. C. (2017). The Impact of Terrorism on Governance in African Countries. World Development, 99, 253–270. https://doi.org/10.1016/J.WORLDDEV.2017.05.023
Asongu, S., Le Roux, S., Nwachukwu, J. C., & Pyke, C. (2018). The mobile phone as an argument for good governance in sub-Saharan Africa. Information Technology & People, 32, 364–386. https://doi.org/10.1108/ITP-01-2018-0011
Attiaoui, I., Toumi, H., Ammouri, B., & Gargouri, I. (2017). Causality links among renewable energy consumption, CO 2 emissions, and economic growth in Africa: evidence from a panel ARDL-PMG approach. Environmental Science and Pollution Research, 24(14), 13036–13048. https://doi.org/10.1007/s11356-017-8850-7
Beck, N., & Katz, J. N. (1995). What To Do (and Not to Do) with Time-Series Cross-Section Data. American Political Science Review, 89(3), 634–647. https://doi.org/10.2307/2082979
Ben Aïssa, M. S., Ben Jebli, M., & Ben Youssef, S. (2014). Output, renewable energy consumption and trade in Africa. Energy Policy, 66, 11–18. https://doi.org/10.1016/J.ENPOL.2013.11.023
Ben Jebli, M. (2016). On the causal links between health indicator, output, combustible renewables and waste consumption, rail transport, and CO2emissions: the case of Tunisia. Environmental Science and Pollution Research, 23(16), 16699–16715. https://doi.org/10.1007/s11356-016-6850-7
Ben Jebli, M., & Ben Youssef, S. (2017). Renewable energy consumption and agriculture: evidence for cointegration and Granger causality for Tunisian economy. International Journal of Sustainable Development and World Ecology, 24(2), 149–158. https://doi.org/10.1080/13504509.2016.1196467
Ben Jebli, M., Ben Youssef, S., & Ozturk, I. (2015). The Role of Renewable Energy Consumption and Trade: Environmental Kuznets Curve Analysis for Sub-Saharan Africa Countries. African Development Review, 27(3), 288–300. https://doi.org/10.1111/1467-8268.12147
Birdsall, N., & Wheeler, D. (1993). Trade Policy and Industrial Pollution in Latin America: Where Are the Pollution Havens? The Journal of Environment & Development, 2(1), 137–149. https://doi.org/10.1177/107049659300200107
Bouzarovski, S. (2009). East-Central Europe’s changing energy landscapes: a place for geography. Area, 41(4), 452–463. https://doi.org/10.1111/j.1475-4762.2009.00885.x
Bouzarovski, S., & Tirado Herrero, S. (2017). The energy divide: Integrating energy transitions, regional inequalities and poverty trends in the European Union. European Urban and Regional Studies, 24(1), 69–86. https://doi.org/10.1177/0969776415596449
Cadoret, I., & Padovano, F. (2016). The political drivers of renewable energies policies. Energy Economics, 56, 261–269. https://doi.org/10.1016/j.eneco.2016.03.003
Camacho, J. A., da Silva Almeida, L., Rodríguez, M., & Molina, J. (2021). Domestic versus foreign energy use: an analysis for four European countries. Environment, Development and Sustainability, 1–21. https://doi.org/10.1007/s10668-021-01622-7
Canarella, G., & Gasparyan, A. (2008). New insights into executive compensation and firm performance: Evidence from a panel of “new economy” firms, 1996-2002. Managerial Finance, 34(8), 537–554. https://doi.org/10.1108/03074350810874064
Chen, Y. (2018). Factors influencing renewable energy consumption in China: An empirical analysis based on provincial panel data. Journal of Cleaner Production, 174, 605–615. https://doi.org/10.1016/j.jclepro.2017.11.011
Cherni, A., & Jouini, S. E. (2017). An ARDL approach to the CO2 emissions, renewable energy and economic growth nexus: Tunisian evidence. International Journal of Hydrogen Energy, 42(48), 29056–29066. https://doi.org/10.1016/j.ijhydene.2017.08.072
Costantini, V., & Monni, S. (2008). Environment, human development and economic growth. Ecological Economics, 64(4), 867–880. https://doi.org/10.1016/J.ECOLECON.2007.05.011
Delahoz-Rosales, B., Camacho-Ballesta, J. A., & Tamayo-Torres, I. (2019). EFECTOS DEL DESARROLLO HUMANO EN EL EMPRENDIMIENTO: UN ANÁLISIS INTERNACIONAL. DYNA Management, 7(1), 1–14. https://doi.org/http://dx.doi.org/10.6036/MN9319
Dhahri, S., & Omri, A. (2018). Entrepreneurship contribution to the three pillars of sustainable development: What does the evidence really say? World Development, 106, 64–77. https://doi.org/10.1016/J.WORLDDEV.2018.01.008
Doytch, N., & Narayan, S. (2016). Does FDI influence renewable energy consumption? An analysis of sectoral FDI impact on renewable and non-renewable industrial energy consumption. Energy Economics, 54, 291–301. https://doi.org/10.1016/j.eneco.2015.12.010
Emara, N., & Chiu, I.-M. (2016). The Impact of Governance on Economic Growth: The Case of Middle Eastern and North African Countries. Topics in Middle Eastern and African Economies, 18(1), 126–144. http://www.luc.edu/orgs/meea/
Eren, B. M., Taspinar, N., & Gokmenoglu, K. K. (2019). The impact of financial development and economic growth on renewable energy consumption: Empirical analysis of India. Science of The Total Environment, 663, 189–197. https://doi.org/10.1016/j.scitotenv.2019.01.323
Ergun, S. J., Owusu, P. A., & Rivas, M. F. (2019). Determinants of renewable energy consumption in Africa. Environmental Science and Pollution Research, 26(15), 15390–15405. https://doi.org/10.1007/s11356-019-04567-7
Eskeland, G. S., & Harrison, A. E. (2003). Moving to greener pastures? Multinationals and the pollution haven hypothesis. Journal of Development Economics, 70(1), 1–23. https://doi.org/10.1016/S0304-3878(02)00084-6
European Parliament. (2019). La energía renovable | Fichas temáticas sobre la Unión Europea | Parlamento Europeo. http://www.europarl.europa.eu/factsheets/es/sheet/70/la-energia-renovable
European Union. (2018). DIRECTIVE (EU) 2018/2001 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL - of 11 December 2018 - on the promotion of the use of energy from renewable sources (recast). https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018L2001&from=EN
Eurostat. (2021, February 15). Renewable energy statistics - Statistics Explained. European Commission. https://ec.europa.eu/eurostat/statistics-explained/index.php/Renewable_energy_statistics#Share_of_renewable_energy_more_than_doubled_between_2004_and_2019
Frolova, M., Frantál, B., Ferrario, V., Centeri, C., Herrero-Luque, D., Grónás, V., Martinát, S., Puttilli, M., Almeida, L., & D’Angelo, F. (2019). Diverse energy transition patterns in Central and Southern Europe: A comparative study of institutional landscapes in the Czech Republic, Hungary, Italy, and Spain. Journal of Landscape Ecology, 17(Especial Issue), 65–89. http://tajokologiailapok.szie.hu/pdf/2019_SpecialIssue/SpecialIssue2019.pdf
Frolova, M., Prados, M. J., & Nadaï, A. (2015). Renewable energies and European landscapes: Lessons from southern European cases. In M. Frolova, M.-J. Prados, & A. Nadaï (Eds.), Renewable Energies and European Landscapes: Lessons from Southern European Cases. Springer Netherlands. https://doi.org/10.1007/978-94-017-9843-3
Greene, W. H. (2012). Econometric analysis (Donna Battista (ed.); 7th ed). Prentice Hall.
Gujarati, D. N., & Porter, D. C. (2010). Econometría (5a). McGraw-Hill. https://scalleruizunp.files.wordpress.com/2015/04/econometria_-_damodar_n-_gujarati.pdf
Gürlük, S. (2009). Economic growth, industrial pollution and human development in the Mediterranean Region. Ecological Economics, 68(8–9), 2327–2335. https://doi.org/10.1016/J.ECOLECON.2009.03.001
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1999). Análisis Multivariante (Vol. 491). Prentice Hall.
Hashemizadeh, A., Bui, Q., & Kongbuamai, N. (2021). Unpacking the role of public debt in renewable energy consumption: New insights from the emerging countries. Energy, 224, 120187. https://doi.org/10.1016/j.energy.2021.120187
Hausman, J. A. (1978). Specification Tests in Econometrics. Econometrica, 46(6), 1251–1271. https://doi.org/10.2307/1913827
IEA. (2020). Data & Statistics - International Energy Agency. https://www.iea.org/data-and-statistics
Ito, K. (2017). CO2 emissions, renewable and non-renewable energy consumption, and economic growth: Evidence from panel data for developing countries. International Economics, 151, 1–6. https://doi.org/10.1016/j.inteco.2017.02.001
Jensen, V. M. H. (1996). Trade and the environment: The pollution haven hypothesis and the industrial flight hypothesis; Some perspectives on theory and empirics (Working Paper 1996.5). University of Oslo, Centre for Development and the Environment.
Jonsson, K. (2005). Cross-sectional Dependency and Size Distortion in a Small-sample Homogeneous Panel Data Unit Root Test. Oxford Bulletin of Economics and Statistics, 67(3), 369–392. https://doi.org/10.1111/j.1468-0084.2005.00124.x
Kaufmann, D., Kraay, A., & Mastruzzi, M. (2010). The Worldwide Governance Indicators: Methodology and Analytical Issues (No. 5430). http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1682130
Khan, H., Khan, I., & Binh, T. T. (2020). The heterogeneity of renewable energy consumption, carbon emission and financial development in the globe: A panel quantile regression approach. Energy Reports, 6, 859–867. https://doi.org/10.1016/j.egyr.2020.04.002
Kraft, J., & Kraft, A. (1978). On the Relationship Between Energy and GNP. The Journal of Energy and Development, 3(2), 401–403. https://doi.org/10.2307/24806805
Lilliestam, J., Thonig, R., Späth, L., Caldés, N., Lechón, Y., Del Río, P., Kiefer, C., Escribano, G., & Lázaro Touza, L. (2019). Policy pathways for the energy transition in Europe and selected European countries. Deliverable 7.2 (MUSTEC), Deliverable 1 (SCCER JA IDEA). http://mustec.eu/sites/default/files/reports/Lilliestam_etal_2019_Policy_pathways_for_the_energy_transition_in_Europe_and_selected_European_countries.pdf
Lin, B., & Moubarak, M. (2014). Renewable energy consumption - Economic growth nexus for China. Renewable and Sustainable Energy Reviews, 40, 111–117. https://doi.org/10.1016/j.rser.2014.07.128
Marinaş, M.-C., Dinu, M., Socol, A.-G., & Socol, C. (2018). Renewable energy consumption and economic growth. Causality relationship in Central and Eastern European countries. PLOS ONE, 13(10), 1–29. https://doi.org/10.1371/journal.pone.0202951
Marra, A., & Colantonio, E. (2021). The path to renewable energy consumption in the European Union through drivers and barriers: A panel vector autoregressive approach. Socio-Economic Planning Sciences, 76(100958), 1–9. https://doi.org/10.1016/j.seps.2020.100958
Mele, M. (2019). Renewable Energy Consumption: The Effects on Economic Growth in Mexico. International Journal of Energy Economics and Policy, 9(3), 269–273. https://doi.org/10.32479/ijeep.7460
Nguyen, K. H., & Kakinaka, M. (2019). Renewable energy consumption, carbon emissions, and development stages: Some evidence from panel cointegration analysis. Renewable Energy, 132, 1049–1057. https://doi.org/10.1016/j.renene.2018.08.069
Nicolini, M., & Tavoni, M. (2017). Are renewable energy subsidies effective? Evidence from Europe. Renewable and Sustainable Energy Reviews, 74, 412–423. https://doi.org/10.1016/j.rser.2016.12.032
Olanrewaju, B. T., Olubusoye, O. E., Adenikinju, A., & Akintande, O. J. (2019). A panel data analysis of renewable energy consumption in Africa. Renewable Energy, 140, 668–679. https://doi.org/10.1016/j.renene.2019.02.061
Omri, A., Daly, S., & Nguyen, D. K. (2015). A robust analysis of the relationship between renewable energy consumption and its main drivers. Applied Economics, 47(28), 2913–2923. https://doi.org/10.1080/00036846.2015.1011312
Omri, A., & Nguyen, D. K. (2014). On the determinants of renewable energy consumption: International evidence. Energy, 72, 554–560. https://doi.org/10.1016/j.energy.2014.05.081
Owusu, P. A., & Asumadu-Sarkodie, S. (2016). A review of renewable energy sources, sustainability issues and climate change mitigation. Cogent Engineering, 3(1). https://doi.org/10.1080/23311916.2016.1167990
Plümper, T., Troeger, V. E., & Manow, P. (2005). Panel data analysis in comparative politics: Linking method to theory. European Journal of Political Research, 44(2), 327–354. https://doi.org/10.1111/j.1475-6765.2005.00230.x
Rasoulinezhad, E., & Saboori, B. (2018). Panel estimation for renewable and non-renewable energy consumption, economic growth, CO2emissions, the composite trade intensity, and financial openness of the commonwealth of independent states. Environmental Science and Pollution Research, 25(18), 17354–17370. https://doi.org/10.1007/s11356-018-1827-3
REN21. (2021). Renewables 2021 Global Status Report. https://www.ren21.net/wp-content/uploads/2019/05/GSR2021_Full_Report.pdf
Sadorsky, P. (2009a). Renewable energy consumption, CO2 emissions and oil prices in the G7 countries. Energy Economics, 31(3), 456–462. https://doi.org/10.1016/j.eneco.2008.12.010
Sadorsky, P. (2009b). Renewable energy consumption and income in emerging economies. Energy Policy, 37(10), 4021–4028. https://doi.org/10.1016/j.enpol.2009.05.003
Saidi, K., & Ben Mbarek, M. (2016). Nuclear energy, renewable energy, CO2emissions, and economic growth for nine developed countries: Evidence from panel Granger causality tests. Progress in Nuclear Energy, 88, 364–374. https://doi.org/10.1016/j.pnucene.2016.01.018
Salim, R. A., Hassan, K., & Shafiei, S. (2014). Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries. Energy Economics, 44, 350–360. https://doi.org/10.1016/j.eneco.2014.05.001
Salim, R. A., & Rafiq, S. (2012). Why do some emerging economies proactively accelerate the adoption of renewable energy? Energy Economics, 34(4), 1051–1057. https://doi.org/10.1016/J.ENECO.2011.08.015
Salim, R. A., & Shafiei, S. (2014). Urbanization and renewable and non-renewable energy consumption in OECD countries: An empirical analysis. Economic Modelling, 38, 581–591. https://doi.org/10.1016/j.econmod.2014.02.008
Sebri, M., & Ben-Salha, O. (2014). On the causal dynamics between economic growth, renewable energy consumption, CO2emissions and trade openness: Fresh evidence from BRICS countries. Renewable and Sustainable Energy Reviews, 39, 14–23. https://doi.org/10.1016/j.rser.2014.07.033
Sohail, M. T., Xiuyuan, Y., Usman, A., Majeed, M. T., & Ullah, S. (2021). Renewable energy and non-renewable energy consumption: assessing the asymmetric role of monetary policy uncertainty in energy consumption. Environmental Science and Pollution Research, 1–10. https://doi.org/10.1007/s11356-021-12867-0
Toumi, S., & Toumi, H. (2019). Asymmetric causality among renewable energy consumption, CO2 emissions, and economic growth in KSA: evidence from a non-linear ARDL model. Environmental Science and Pollution Research, 26(16), 1–12. https://doi.org/10.1007/s11356-019-04955-z
UNDP. (2020). Human Development Reports - Human Development Index (HDI). United Nations Development Programme. http://hdr.undp.org/en/indicators/137506
Unión Europea. (1992). Tratado de la Unión Europea (92/C 191/01). https://eur-lex.europa.eu/legal-content/ES/TXT/PDF/?uri=CELEX:11992M/TXT&from=PT
Unión Europea. (2021). Historia de la UE. https://european-union.europa.eu/principles-countries-history/history-eu_es
Wooldridge, J. M. (2002). Econometric Analysis of Cross Section and Panel Data. The MIT Press. https://jrvargas.files.wordpress.com/2011/01/wooldridge_j-_2002_econometric_analysis_of_cross_section_and_panel_data.pdf
Wooldridge, J. M. (2010). Introducción a la econometría: Un enfoque moderno (4a. edició). Cegage Learning. http://latinoamerica.cengage.com
World Bank. (2019a). World Development Indicators | DataBank. https://databank.worldbank.org/source/world-development-indicators
World Bank. (2019b). Worldwide Governance Indicators | DataBank. https://databank.worldbank.org/reports.aspx?source=worldwide-governance-indicators
Xing, Y., & Kolstad, C. (1996). Environment and Trade: A Review of Theory and Issues (No. 27694; p. 42). https://mpra.ub.uni-muenchen.de/27694/1/MPRA_paper_27694.pdf
Yanikkaya, H. (2003). Trade openness and economic growth: a cross-country empirical investigation. Journal of Development Economics, 72(1), 57–89. https://doi.org/10.1016/S0304-3878(03)00068-3
Zarsky, L. (1999). Havens, Halos and Spaghetti: Untangling the Evidence about Foreign Direct Investment and the Environment. In Foreign Direct Investment and the Environment (pp. 47–74). OECD Publishing. https://doi.org/10.1787/9789264266315-en
Zhao, P., Lu, Z., Fang, J., Paramati, S. R., & Jiang, K. (2020). Determinants of renewable and non-renewable energy demand in China. Structural Change and Economic Dynamics, 54, 202–209. https://doi.org/10.1016/j.strueco.2020.05.002
Published
Issue
Section
License
Copyright (c) 2022 Universidad de Jaén
This work is licensed under a Creative Commons Attribution 4.0 International License.
- Authors maintain the copyright, but they guarantee the journal its right for publication, that is under Creative Commons Licence, permitting others share the work, whereas clearly indicating the author and the first publication of the journal.
- Authors could adopt non-exclusive licence agreements for delivering the published version, whereas clearly indicating the first publishing in Revista de Estudios Empresariales. Second Era.
- Authors are encouraged to spread their works through Internet before and during the sending process, in order to make interesting scientific discussions that could increase the cites of the published work (Open Citation Project).
Revista de Estudios Empresariales. Second Era, uses PKP Preservation Network (PN).
