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Renewable Energy (Solar and Wind) Generation and its Effect on some Variables for Selected EU Countries with Panel VAR Model

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  • Shahi Md. Tanvir Alam

    (Stipendium Hungaricum PhD. Fellow, Doctoral School of Economics, Faculty of Economics and Business Administration, University of Szeged, Hungary.)

Abstract

Keeping the world livable, the policy makers are giving their extended focus on green energy. They are trying to move on hand-on-hand with rising green energy and lessening carbon dioxide (CO2) emission steading the economic activities specially for the open and developing countries. This can be helpful to provide a more lucrative economic environment to meet the extended demand of the society. The paper highlights to find out whether the economic growth, renewable energy consumption, fossil fuel-based energy generation and CO2 emission are significantly impactful on renewable energy generation or not? Is there any mutual, bi-directorial, unidirectional relationship with each other? For this, the Vector Autoregression (VAR) model is run. The paper focuses on six EU countries who are practicing auction scheme for deploying robust green energy (especially solar and wind) by reducing dependency on fossil fuel and expanding their economy with less CO2 emission. The result of the analysis shows that a positive influence of each concern variable on renewable energy (RE) generation and auction scheme might have a significant impact if robustness of the generation occurs.

Suggested Citation

  • Shahi Md. Tanvir Alam, 2022. "Renewable Energy (Solar and Wind) Generation and its Effect on some Variables for Selected EU Countries with Panel VAR Model," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 303-310, September.
    • Handle: RePEc:eco:journ2:2022-05-36
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    More about this item

    Keywords

    RE generation; CO2 emission; Fossil fuel; Economic growth; Auction scheme;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • 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

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