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Analysing the Effects of the Business Cycle on Renewable Energy Consumption and Sustainable Development: Evidence from EU Countries

Author

Listed:
  • Mihail Busu

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Gabriel Staicu

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Mihai Gheorghe

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Enrico Prinz

    (EM Strasbourg Business School - University of Strasbourg, Strasbourg, France)

  • Luis Miguel Fonseca

    (ISEP, Polytechnic University of Porto, Porto, Portugal)

Abstract

This article examines the relationship between business cycles and renewable energy consumption (REC/capita) in the European Union (EU) over the past two decades. Using a panel data regression model, the study identifies GDP growth, government effectiveness, regulatory quality, and political stability as significant indicators impacting REC across all EU member states. The model presents significant regression coefficients, emphasising that these variables have a consistent impact on REC. Our research findings confirm the conservation hypothesis developed in the specific literature, identifying the REC s sensitivity to different economic shocks. From this perspective, the EU policymakers should consider a balanced approach between economic and environmental SDGs since economic growth not only promotes short-run welfare, but also contributes to long-run environmental sustainability.

Suggested Citation

  • Mihail Busu & Gabriel Staicu & Mihai Gheorghe & Enrico Prinz & Luis Miguel Fonseca, 2024. "Analysing the Effects of the Business Cycle on Renewable Energy Consumption and Sustainable Development: Evidence from EU Countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 26(Special 1), pages 1048-1048, November.
    • Handle: RePEc:aes:amfeco:v:26:y:2024:i:special18:p:1048
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    More about this item

    Keywords

    business cycle; economic growth; renewable energy consumption; sustainable development; government effectiveness; regulatory framework.;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • 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

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