IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v125y2020ics0305750x19303419.html
   My bibliography  Save this article

Renewable electricity and sustainable development goals in the EU

Author

Listed:
  • Swain, Ranjula Bali
  • Karimu, Amin

Abstract

Renewable energy (RE) has a strong synergy with some of the sustainable development goals (SDGs), thus its successful deployment can potentially result in an impact on these SDGs. In this study, we examine the synergy effect of renewable electricity on selected SDGs via the electricity prices for the European Union (EU) countries. Using panel data and a two-step estimation approach, our findings indicate a strong synergy effect between renewable electricity prices, SDG 7 (affordable and clean energy) and SDG 8 (decent work and economic growth). The results further reveal that SDG 12 (responsible production and consumption) accounts for most of the future renewable electricity price variation (excluding self-effect), whereas future variation in SDG 7 (affordable and clean energy) and SDG 13 (climate action) are explained mostly by SDG 8 and SDG 12, respectively.

Suggested Citation

  • Swain, Ranjula Bali & Karimu, Amin, 2020. "Renewable electricity and sustainable development goals in the EU," World Development, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:wdevel:v:125:y:2020:i:c:s0305750x19303419
    DOI: 10.1016/j.worlddev.2019.104693
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X19303419
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2019.104693?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Blazejczak, Jürgen & Braun, Frauke G. & Edler, Dietmar & Schill, Wolf-Peter, 2014. "Economic effects of renewable energy expansion: A model-based analysis for Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1070-1080.
    2. Karimu, Amin & Brännlund, Runar, 2013. "Functional form and aggregate energy demand elasticities: A nonparametric panel approach for 17 OECD countries," Energy Economics, Elsevier, vol. 36(C), pages 19-27.
    3. Massimo Filippini & Lester C. Hunt, 2011. "Energy Demand and Energy Efficiency in the OECD Countries: A Stochastic Demand Frontier Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 59-80.
    4. Lund, Henrik, 2007. "Renewable energy strategies for sustainable development," Energy, Elsevier, vol. 32(6), pages 912-919.
    5. Mathiesen, Brian Vad & Lund, Henrik & Karlsson, Kenneth, 2011. "100% Renewable energy systems, climate mitigation and economic growth," Applied Energy, Elsevier, vol. 88(2), pages 488-501, February.
    6. Tsai, Wen-Tien, 2010. "Energy sustainability from analysis of sustainable development indicators: A case study in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 2131-2138, September.
    7. Blázquez, Leticia & Boogen, Nina & Filippini, Massimo, 2013. "Residential electricity demand in Spain: New empirical evidence using aggregate data," Energy Economics, Elsevier, vol. 36(C), pages 648-657.
    8. Streimikiene, Dalia & Ciegis, Remigijus & Grundey, Dainora, 2007. "Energy indicators for sustainable development in Baltic States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(5), pages 877-893, June.
    9. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2012. "Temperature Shocks and Economic Growth: Evidence from the Last Half Century," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(3), pages 66-95, July.
    10. Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2008. "The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Energy Policy, Elsevier, vol. 36(8), pages 3076-3084, August.
    11. Lund, H. & Mathiesen, B.V., 2009. "Energy system analysis of 100% renewable energy systems—The case of Denmark in years 2030 and 2050," Energy, Elsevier, vol. 34(5), pages 524-531.
    12. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    13. Mulder, Machiel & Scholtens, Bert, 2013. "The impact of renewable energy on electricity prices in the Netherlands," Renewable Energy, Elsevier, vol. 57(C), pages 94-100.
    14. Arkesteijn, Karlijn & Oerlemans, Leon, 2005. "The early adoption of green power by Dutch households: An empirical exploration of factors influencing the early adoption of green electricity for domestic purposes," Energy Policy, Elsevier, vol. 33(2), pages 183-196, January.
    15. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    16. Cialani, Catia & Mortazavi, Reza, 2018. "Household and industrial electricity demand in Europe," Energy Policy, Elsevier, vol. 122(C), pages 592-600.
    17. Love, Inessa & Zicchino, Lea, 2006. "Financial development and dynamic investment behavior: Evidence from panel VAR," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(2), pages 190-210, May.
    18. Vera, Ivan & Langlois, Lucille, 2007. "Energy indicators for sustainable development," Energy, Elsevier, vol. 32(6), pages 875-882.
    19. Bergek, Anna & Mignon, Ingrid, 2017. "Motives to adopt renewable electricity technologies: Evidence from Sweden," Energy Policy, Elsevier, vol. 106(C), pages 547-559.
    20. Thure Traber & Claudia Kemfert, 2009. "Impacts of the German Support for Renewable Energy on Electricity Prices, Emissions, and Firms," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 155-178.
    21. Klevas, Valentinas & Streimikiene, Dalia & Grikstaite, Ramute, 2007. "Sustainable energy in Baltic States," Energy Policy, Elsevier, vol. 35(1), pages 76-90, January.
    22. Gunnar Eskeland & Torben Mideksa, 2010. "Electricity demand in a changing climate," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 15(8), pages 877-897, December.
    23. Balcombe, Paul & Rigby, Dan & Azapagic, Adisa, 2014. "Investigating the importance of motivations and barriers related to microgeneration uptake in the UK," Applied Energy, Elsevier, vol. 130(C), pages 403-418.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tutak, Magdalena & Brodny, Jarosław, 2022. "Analysis of the level of energy security in the three seas initiative countries," Applied Energy, Elsevier, vol. 311(C).
    2. Lehr, Ulrike & Lutz, Christian & Edler, Dietmar, 2012. "Green jobs? Economic impacts of renewable energy in Germany," Energy Policy, Elsevier, vol. 47(C), pages 358-364.
    3. Vithayasrichareon, Peerapat & MacGill, Iain F. & Nakawiro, Thanawat, 2012. "Assessing the sustainability challenges for electricity industries in ASEAN newly industrialising countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2217-2233.
    4. Gunnarsdottir, I. & Davidsdottir, B. & Worrell, E. & Sigurgeirsdottir, S., 2021. "Sustainable energy development: History of the concept and emerging themes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    5. Rafael Ninno Muniz & Stéfano Frizzo Stefenon & William Gouvêa Buratto & Ademir Nied & Luiz Henrique Meyer & Erlon Cristian Finardi & Ricardo Marino Kühl & José Alberto Silva de Sá & Brigida Ramati Per, 2020. "Tools for Measuring Energy Sustainability: A Comparative Review," Energies, MDPI, vol. 13(9), pages 1-27, May.
    6. Gunnarsdottir, I. & Davidsdottir, B. & Worrell, E. & Sigurgeirsdottir, S., 2020. "Review of indicators for sustainable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    7. Yuan, Mei-Hua & Lo, Shang-Lien, 2020. "Developing indicators for the monitoring of the sustainability of food, energy, and water," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    8. Gunnarsdottir, I. & Davidsdottir, B. & Worrell, E. & Sigurgeirsdottir, S., 2022. "Indicators for sustainable energy development: An Icelandic case study," Energy Policy, Elsevier, vol. 164(C).
    9. Figueiredo, Nuno Carvalho & Silva, Patrícia Pereira da & Cerqueira, Pedro A., 2016. "It is windy in Denmark: Does market integration suffer?," Energy, Elsevier, vol. 115(P2), pages 1385-1399.
    10. Lund, Henrik & Mathiesen, Brian Vad, 2012. "The role of Carbon Capture and Storage in a future sustainable energy system," Energy, Elsevier, vol. 44(1), pages 469-476.
    11. Mihaela Simionescu & Yuriy Bilan & Emília Krajňáková & Dalia Streimikiene & Stanisław Gędek, 2019. "Renewable Energy in the Electricity Sector and GDP per Capita in the European Union," Energies, MDPI, vol. 12(13), pages 1-15, June.
    12. Adom, Philip Kofi & Insaidoo, Michael & Minlah, Michael Kaku & Abdallah, Abdul-Mumuni, 2017. "Does renewable energy concentration increase the variance/uncertainty in electricity prices in Africa?," Renewable Energy, Elsevier, vol. 107(C), pages 81-100.
    13. Elgin, Ceyhun & Yucel, Emekcan, 2014. "Determinants of the weight for leisure in preferences," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-26.
    14. Vidal-Amaro, Juan José & Østergaard, Poul Alberg & Sheinbaum-Pardo, Claudia, 2015. "Optimal energy mix for transitioning from fossil fuels to renewable energy sources – The case of the Mexican electricity system," Applied Energy, Elsevier, vol. 150(C), pages 80-96.
    15. Meyar-Naimi, H. & Vaez-Zadeh, S., 2012. "Developing a DSR-HNS policy making framework for electric energy systems," Energy Policy, Elsevier, vol. 42(C), pages 616-627.
    16. Michaela Makešová & Michaela Valentová, 2021. "The Concept of Multiple Impacts of Renewable Energy Sources: A Critical Review," Energies, MDPI, vol. 14(11), pages 1-21, May.
    17. Liu, Wen & Lund, Henrik & Mathiesen, Brian Vad & Zhang, Xiliang, 2011. "Potential of renewable energy systems in China," Applied Energy, Elsevier, vol. 88(2), pages 518-525, February.
    18. Costa-Campi, Maria Teresa & Trujillo-Baute, Elisa, 2015. "Retail price effects of feed-in tariff regulation," Energy Economics, Elsevier, vol. 51(C), pages 157-165.
    19. Dominković, D.F. & Weinand, J.M. & Scheller, F. & D'Andrea, M. & McKenna, R., 2022. "Reviewing two decades of energy system analysis with bibliometrics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    20. Thé, Jesse & Yu, Hesheng, 2017. "A critical review on the simulations of wind turbine aerodynamics focusing on hybrid RANS-LES methods," Energy, Elsevier, vol. 138(C), pages 257-289.

    More about this item

    Keywords

    Sustainable development goals; Electricity price; Renewable energy; EU;
    All these keywords.

    JEL classification:

    • 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
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:125:y:2020:i:c:s0305750x19303419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.