IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i16p6094-d1221776.html
   My bibliography  Save this article

Effects of Energy Economic Variables on the Economic Growth of the European Union (2010–2019)

Author

Listed:
  • László Török

    (Department of Engineering Management and Enterprise, Industrial Process Management Institute, Faculty of Engineering, University of Debrecen, Ótemető u. 2-4, 4032 Debrecen, Hungary)

Abstract

The economic downturn caused by the financial crisis of 2008–2009 and the intensifying global climate policy trends forced changes in the energy management of the European Union. The study examined how the most relevant energy economic variables affected the economic growth of the E.U. between 2010–2019. The study used the PSL-PM methodology to explore the relationship between G.D.P. (dependent variable) and energy consumption, greenhouse gas emissions, the average energy price, and renewable energy use (independent variables). The main findings are: G.D.P. growth is negatively correlated with CO 2 emissions, showing that the E.U. economy is still highly dependent on fossil fuels; the increase in the proportion of renewable energy consumption contributed to the growth of the E.U.’s G.D.P.; CO 2 emissions, energy consumption, and the average energy price are more critical in E.U. member states with a lower G.D.P.; renewable energy use and energy balance are essential in countries where more emphasis is placed on replacing traditional energy sources and reducing energy dependence; there is a strong positive correlation between G.D.P. and renewable energy use, indicating that this type of energy use effectively supports E.U. economic growth. The results of the multicollinearity test show that there is also a strong linear dependence between the independent energy economic variables. One of the significances of the study is that the presented and analyzed variables and the relationships between them can contribute to optimizing the E.U.’s currently critical energy management and economic growth.

Suggested Citation

  • László Török, 2023. "Effects of Energy Economic Variables on the Economic Growth of the European Union (2010–2019)," Energies, MDPI, vol. 16(16), pages 1-17, August.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:16:p:6094-:d:1221776
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/16/6094/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/16/6094/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dagoumas, Athanasios S. & Polemis, Michael L. & Soursou, Symeoni-Eleni, 2020. "Revisiting the impact of energy prices on economic growth: Lessons learned from the European Union," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 85-95.
    2. Acaravci, Ali & Ozturk, Ilhan, 2010. "On the relationship between energy consumption, CO2 emissions and economic growth in Europe," Energy, Elsevier, vol. 35(12), pages 5412-5420.
    3. Sergey Mikhailovich Vasin, 2022. "Sectoral Transformation of the Economic System during Crisis and Stable Growth Periods (A Case Study of the European Countries)," Economies, MDPI, vol. 10(6), pages 1-22, June.
    4. Lidia Luty & Monika Zioło & Wioletta Knapik & Iwona Bąk & Karol Kukuła, 2023. "Energy Security in Light of Sustainable Development Goals," Energies, MDPI, vol. 16(3), pages 1-18, January.
    5. Tomasz Rokicki & Grzegorz Koszela & Luiza Ochnio & Kamil Wojtczuk & Marcin Ratajczak & Hubert Szczepaniuk & Konrad Michalski & Piotr Bórawski & Aneta Bełdycka-Bórawska, 2021. "Diversity and Changes in Energy Consumption by Transport in EU Countries," Energies, MDPI, vol. 14(17), pages 1-21, August.
    6. Henrique Oliveira & Víctor Moutinho, 2021. "Renewable Energy, Economic Growth and Economic Development Nexus: A Bibliometric Analysis," Energies, MDPI, vol. 14(15), pages 1-28, July.
    7. Yi Hu & Dongmei Guo & Mingxi Wang & Xi Zhang & Shouyang Wang, 2015. "The Relationship between Energy Consumption and Economic Growth: Evidence from China’s Industrial Sectors," Energies, MDPI, vol. 8(9), pages 1-15, August.
    8. Olimpia Neagu & Mircea Constantin Teodoru, 2019. "The Relationship between Economic Complexity, Energy Consumption Structure and Greenhouse Gas Emission: Heterogeneous Panel Evidence from the EU Countries," Sustainability, MDPI, vol. 11(2), pages 1-29, January.
    9. Peter Baláž & Juraj Bayer, 2019. "Energy Prices and their Impact on the Competitiveness of the EU Steel Industry," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(5), pages 547-566.
    10. Tomasz Rokicki & Aleksandra Perkowska, 2021. "Diversity and Changes in the Energy Balance in EU Countries," Energies, MDPI, vol. 14(4), pages 1-19, February.
    11. H ctor F. Salazar-N ez & Francisco Venegas-Mart nez & Miguel Tinoco-Zerme o, 2020. "Impact of Energy Consumption and Carbon Dioxide Emissions on Economic Growth: Cointegrated Panel Data in 79 Countries Grouped by Income Level," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 218-226.
    12. Małgorzata Stec & Mariola Grzebyk, 2022. "Statistical Analysis of the Level of Development of Renewable Energy Sources in the Countries of the European Union," Energies, MDPI, vol. 15(21), pages 1-18, November.
    13. Dorota Miłek & Paulina Nowak & Jolanta Latosińska, 2022. "The Development of Renewable Energy Sources in the European Union in the Light of the European Green Deal," Energies, MDPI, vol. 15(15), pages 1-17, August.
    14. Augustine C. Osigwe & Damilola Felix Arawomo, 2015. "Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 408-414.
    15. Łukasz Topolewski, 2021. "Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis," Energies, MDPI, vol. 14(12), pages 1-12, June.
    16. Heungsun Hwang & Yoshio Takane, 2004. "Generalized structured component analysis," Psychometrika, Springer;The Psychometric Society, vol. 69(1), pages 81-99, March.
    17. Salari, Mahmoud & Javid, Roxana J. & Noghanibehambari, Hamid, 2021. "The nexus between CO2 emissions, energy consumption, and economic growth in the U.S," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 182-194.
    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. Marcin Bukowski & Janusz Majewski & Agnieszka Sobolewska, 2023. "The Environmental Impact of Changes in the Structure of Electricity Sources in Europe," Energies, MDPI, vol. 16(1), pages 1-22, January.
    2. Michał Gostkowski & Tomasz Rokicki & Luiza Ochnio & Grzegorz Koszela & Kamil Wojtczuk & Marcin Ratajczak & Hubert Szczepaniuk & Piotr Bórawski & Aneta Bełdycka-Bórawska, 2021. "Clustering Analysis of Energy Consumption in the Countries of the Visegrad Group," Energies, MDPI, vol. 14(18), pages 1-25, September.
    3. Norbert Bozsik & András Szeberényi & Nándor Bozsik, 2023. "Examination of the Hungarian Electricity Industry Structure with Special Regard to Renewables," Energies, MDPI, vol. 16(9), pages 1-23, April.
    4. Anna Marciniuk-Kluska & Mariusz Kluska, 2023. "Forecasting Energy Recovery from Municipal Waste in a Closed-Loop Economy," Energies, MDPI, vol. 16(6), pages 1-15, March.
    5. Tomasz Rokicki & Radosław Jadczak & Adam Kucharski & Piotr Bórawski & Aneta Bełdycka-Bórawska & András Szeberényi & Aleksandra Perkowska, 2022. "Changes in Energy Consumption and Energy Intensity in EU Countries as a Result of the COVID-19 Pandemic by Sector and Area Economy," Energies, MDPI, vol. 15(17), pages 1-26, August.
    6. Olimpia Neagu, 2020. "Economic Complexity and Ecological Footprint: Evidence from the Most Complex Economies in the World," Sustainability, MDPI, vol. 12(21), pages 1-18, October.
    7. Wadim Strielkowski & Lubomír Civín & Elena Tarkhanova & Manuela Tvaronavičienė & Yelena Petrenko, 2021. "Renewable Energy in the Sustainable Development of Electrical Power Sector: A Review," Energies, MDPI, vol. 14(24), pages 1-24, December.
    8. Olga Pilipczuk, 2021. "Determinants of Managerial Competences Transformation in the Polish Energy Industry," Energies, MDPI, vol. 14(20), pages 1-27, October.
    9. Gordon Rausser & Wadim Strielkowski & Grzegorz Mentel, 2023. "Consumer Attitudes toward Energy Reduction and Changing Energy Consumption Behaviors," Energies, MDPI, vol. 16(3), pages 1-5, February.
    10. Rafał Trzaska & Adam Sulich & Michał Organa & Jerzy Niemczyk & Bartosz Jasiński, 2021. "Digitalization Business Strategies in Energy Sector: Solving Problems with Uncertainty under Industry 4.0 Conditions," Energies, MDPI, vol. 14(23), pages 1-21, November.
    11. Raei, Hasan & Maleki, Abbas & Farajzadeh, Zakariya, 2024. "Analysis of energy policy reform in Iran: Energy and emission intensity changes," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1535-1557.
    12. Geoffrey Ssebabi Mutumba & Tomson Odongo & Francis Nathan Okurut & Vincent Bagire & Livingstone Senyonga, 2022. "Renewable and non-renewable energy consumption and economic growth in Uganda," SN Business & Economics, Springer, vol. 2(7), pages 1-28, July.
    13. Katarzyna Szymczyk & Dilek Şahin & Haşim Bağcı & Ceyda Yerdelen Kaygın, 2021. "The Effect of Energy Usage, Economic Growth, and Financial Development on CO 2 Emission Management: An Analysis of OECD Countries with a High Environmental Performance Index," Energies, MDPI, vol. 14(15), pages 1-21, August.
    14. Qusai Mohammad Qasim Alabed & Fathin Faizah Said & Zulkefly Abdul Karim & Mohd Azlan Shah Zaidi & Mohammed Daher Alshammary, 2021. "Energy–Growth Nexus in the MENA Region: A Dynamic Panel Threshold Estimation," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    15. Tomasz Rokicki & Piotr Bórawski & András Szeberényi, 2023. "The Impact of the 2020–2022 Crises on EU Countries’ Independence from Energy Imports, Particularly from Russia," Energies, MDPI, vol. 16(18), pages 1-26, September.
    16. Tri Wahyu Adi & Eri Prabowo & Oetami Prasadjaningsih, 2022. "Influence of Electricity Consumption of Industrial and Business, Electricity Price, Inflation and Interest Rate on GDP and Investments in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 331-340, May.
    17. Tomasz Rokicki & Piotr Bórawski & Barbara Gradziuk & Piotr Gradziuk & Aldona Mrówczyńska-Kamińska & Joanna Kozak & Danuta Jolanta Guzal-Dec & Kamil Wojtczuk, 2021. "Differentiation and Changes of Household Electricity Prices in EU Countries," Energies, MDPI, vol. 14(21), pages 1-21, October.
    18. Balsalobre-Lorente, Daniel & Ibáñez-Luzón, Lucia & Usman, Muhammad & Shahbaz, Muhammad, 2022. "The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries," Renewable Energy, Elsevier, vol. 185(C), pages 1441-1455.
    19. Krystyna Gomółka & Piotr Kasprzak, 2022. "Household Ability of Expenditures on Electricity and Energy Resources in the Countries That Joined the EU after 2004," Energies, MDPI, vol. 15(9), pages 1-21, April.
    20. Anna Komarnicka & Anna Murawska, 2021. "Comparison of Consumption and Renewable Sources of Energy in European Union Countries—Sectoral Indicators, Economic Conditions and Environmental Impacts," Energies, MDPI, vol. 14(12), pages 1-24, June.

    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:gam:jeners:v:16:y:2023:i:16:p:6094-:d:1221776. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.