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Determinants of Renewable Energy Development: Evidence from the EU Countries

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  • Yu-Xia Tu

    (School of Accounting and Finance, Xi’an Pei Hua University, Xi’an 710100, China)

  • Oleksandr Kubatko

    (Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine)

  • Vladyslav Piven

    (Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine)

  • Iryna Sotnyk

    (Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine)

  • Tetiana Kurbatova

    (International Economic Relations Department, Sumy State University, 40007 Sumy, Ukraine)

Abstract

Sustainable development of the global economy can be achieved with the help of renewable energy (RE). The paper investigates the determinants of RE development in order to boost its adoption. The determinants of RE deployment were analyzed using random-effects GLS regression for the panel data from 27 EU member states in 2011–2020.The results confirm that economic development and high employment in advanced technology manufacturing are drivers of the RE sector, whereas unemployment growth affects RE deployment negatively. Our results show that active political participation and economic freedom promote RE; however, the level of corruption and democracy does not have a statistically significant impact on it. Favorable geographical location was proved to be a determinant of RE development. The hypothesis that plenty of natural resources discourage countries to develop RE was disproved. The major policy implications for RE promotion include the importance of economy deregulation, open market development and educational transformations. Following the results, prospects for further research were outlined.

Suggested Citation

  • Yu-Xia Tu & Oleksandr Kubatko & Vladyslav Piven & Iryna Sotnyk & Tetiana Kurbatova, 2022. "Determinants of Renewable Energy Development: Evidence from the EU Countries," Energies, MDPI, vol. 15(19), pages 1-14, September.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:19:p:7093-:d:926558
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