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Economic and Social Drivers of Renewable Energy Consumption in the European Union: An Econometric Analysis

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  • Reni Pantcheva

Abstract

Renewable energy aspires to boost decarbonisation and power the circular economy in accordance with the Green Deal objectives. The transition, however, faces many challenges and understanding the drivers behind it is essential. This paper analyses 27 European Union countries for the period 2008 – 2020 to identify economic and social determinants influencing renewable energy consumption. The results indicate that the population density, education, economic growth, digitalisation and research and development have a considerable positive impact. Urbanisation, on the other hand, appears to exert a negative influence. In addition, the empirical findings reveal a unidirectional causal relationship running from education, economic growth and energy poverty towards renewable energy consumption. This research provides useful insights into important drivers of renewable energy adoption which can facilitate or hinder the energy transition and achievement of carbon neutrality goals.

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  • Reni Pantcheva, 2024. "Economic and Social Drivers of Renewable Energy Consumption in the European Union: An Econometric Analysis," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 62-84.
    • Handle: RePEc:bas:econst:y:2024:i:7:p:62-84
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    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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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