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Renewables and Decarbonisation: Implications for Energy Policy in the European Union

Author

Listed:
  • Dan Gabriel Dumitrescu

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Alexandra Horobe?

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Cristiana Doina Tudor

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Lucian Belascu

    (Lucian Blaga” University of Sibiu, Romania)

Abstract

The study examines the contribution of low-carbon and fossil electricity sources to environmental degradation in the European Union countries, modelled by economic development and globalisation. We ensure the robustness of the results by exploring the concurrent and individual effects of the alternative electricity sources on GHG emissions. Consistent GMM estimators indicate that all low-carbon sources have a mitigating effect on environmental degradation in the EU, in a context of persistent pollution fuelled by fossil-fuels-based electricity. Hydropower and wind emerge as the most efficient electricity generation sources in the fight against climate change. Countries’ development level, globalisation and population were not found to significantly impact pollution in EU countries. Our results have important implications for energy policy, suggesting that replacing fossil fuels in electricity generation with low-carbon sources, in particular wind and hydro, is a beneficial path to achieve decarbonisation while also decreasing the EU’s reliance on foreign oil and gas.

Suggested Citation

  • Dan Gabriel Dumitrescu & Alexandra Horobe? & Cristiana Doina Tudor & Lucian Belascu, 2023. "Renewables and Decarbonisation: Implications for Energy Policy in the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(63), pages 345-345, April.
  • Handle: RePEc:aes:amfeco:v:25:y:2023:i:63:p:345
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    References listed on IDEAS

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    Cited by:

    1. Alexandra Horobet & Lucian Belascu & Magdalena Radulescu & Daniel Balsalobre-Lorente & Cosmin-Alin Botoroga & Cristina-Carmencita Negreanu, 2024. "Exploring the Nexus between Greenhouse Emissions, Environmental Degradation and Green Energy in Europe: A Critique of the Environmental Kuznets Curve," Energies, MDPI, vol. 17(20), pages 1-29, October.
    2. Rafal Czyzycki & Konrad Kochanski, 2023. "Regional Differences in Energy Policy Changes of EU Countries in 2012-2021," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 492-499.
    3. Bożena Gajdzik & Rafał Nagaj & Radosław Wolniak & Dominik Bałaga & Brigita Žuromskaitė & Wiesław Wes Grebski, 2024. "Renewable Energy Share in European Industry: Analysis and Extrapolation of Trends in EU Countries," Energies, MDPI, vol. 17(11), pages 1-38, May.

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    More about this item

    Keywords

    Energy policy; European Union; decarbonisation; low-carbon electricity; renewable energy; system-GMM.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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