IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i23p7808-d1288834.html
   My bibliography  Save this article

Renewables, Energy Mix and Inflation in the European Union Countries

Author

Listed:
  • Łukasz Markowski

    (Institute of Economics and Finance, University of Warmia and Mazury in Olsztyn, Oczapowskiego 4, 10-719 Olsztyn, Poland)

  • Kamil Kotliński

    (Institute of Economics and Finance, University of Warmia and Mazury in Olsztyn, Oczapowskiego 4, 10-719 Olsztyn, Poland)

Abstract

One of the effects of the 2022 energy crisis was a high increase in inflation. According to a review of the literature on the subject, a factor that may increase the economy’s resistance to external price shocks is the relatively high share of renewable sources in energy production. The aim of this paper is to assess the relationship between the share of renewables in energy production and the level of HICP and core inflation in a cross-sectional approach in the crisis year of 2022 within the EU countries. This study used regression methods, cluster analysis and dispersion measures. As a result of the analysis, it was found that in 2022 (using a cross-sectional approach), there was a statistically significant relationship between the above-mentioned variables. A higher share of renewables by 1 p.p. meant lower HICP by 0.13 p.p. and lower core inflation by 0.1 p.p. “Wind” and “solar” had the greatest importance in the multiple regression equation. It can also be stated that in 2022, countries with a similar energy mix structure were characterized as having a similar rate of inflation. It is therefore justified to increase the share of renewables in energy production, because it brings not only positive environmental but also economic effects.

Suggested Citation

  • Łukasz Markowski & Kamil Kotliński, 2023. "Renewables, Energy Mix and Inflation in the European Union Countries," Energies, MDPI, vol. 16(23), pages 1-15, November.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:23:p:7808-:d:1288834
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/23/7808/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/23/7808/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Khan, Irfan & Zakari, Abdulrasheed & Dagar, Vishal & Singh, Sanjeet, 2022. "World energy trilemma and transformative energy developments as determinants of economic growth amid environmental sustainability," Energy Economics, Elsevier, vol. 108(C).
    2. Mirza, Nawazish & Naqvi, Bushra & Rizvi, Syed Kumail Abbas & Boubaker, Sabri, 2023. "Exchange rate pass-through and inflation targeting regime under energy price shocks," Energy Economics, Elsevier, vol. 124(C).
    3. Dagher, Leila & Hasanov, Fakhri J., 2023. "Oil market shocks and financial instability in Asian countries," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 182-195.
    4. Glenn Milligan & Martha Cooper, 1988. "A study of standardization of variables in cluster analysis," Journal of Classification, Springer;The Classification Society, vol. 5(2), pages 181-204, September.
    5. Wojciech Tomasz Ozdarski & Miroslawa Witkowska-Dabrowska & Ilisio Manuel de Jesus, 2021. "Feasibility Study Of The Use Of Renewable Energy Sources In Households," OLSZTYN ECONOMIC JOURNAL, University of Warmia and Mazury in Olsztyn, Faculty of Economic Sciences, vol. 16(2), pages 251-262, December.
    6. Naeem, Muhammad Abubakr & Peng, Zhe & Suleman, Mouhammed Tahir & Nepal, Rabindra & Shahzad, Syed Jawad Hussain, 2020. "Time and frequency connectedness among oil shocks, electricity and clean energy markets," Energy Economics, Elsevier, vol. 91(C).
    7. Richhild Moessner, 2022. "Effects of Carbon Pricing on Inflation," CESifo Working Paper Series 9563, CESifo.
    8. Keramitsoglou, Kiriaki M. & Mellon, Robert C. & Tsagkaraki, Maria I. & Tsagarakis, Konstantinos P., 2016. "Clean, not green: The effective representation of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1332-1337.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arkadiusz Małek & Andrzej Marciniak & Tomasz Bednarczyk, 2024. "Probabilistic Analysis of Electricity Production from a Photovoltaic–Wind Energy Mix for Sustainable Transport Needs," Sustainability, MDPI, vol. 16(23), pages 1-23, November.

    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. Lu, Xunfa & He, Pengchao & Zhang, Zhengjun & Apergis, Nicholas & Roubaud, David, 2024. "Extreme co-movements between decomposed oil price shocks and sustainable investments," Energy Economics, Elsevier, vol. 134(C).
    2. Łukasz Markowski & Kamil Kotliński & Aleksandra Ostrowska, 2023. "Sustainable Consumption and Production in the European Union—An Attempt to Assess Changes and Convergence from the Perspective of Central and Eastern European Countries," Sustainability, MDPI, vol. 15(23), pages 1-23, December.
    3. Heni Boubaker & Ben Saad Zorgati Mouna, 2024. "Transmission of Inflation and Exchange Rate Effects: The Markov Switching Vector Autoregressive Methodology," JRFM, MDPI, vol. 17(6), pages 1-30, May.
    4. Giuseppe RICCIARDO LAMONICA, 2002. "La funzionalita' nelle zone omogenee delle Marche," Working Papers 165, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    5. Roberto Rocci & Stefano Antonio Gattone & Roberto Di Mari, 2018. "A data driven equivariant approach to constrained Gaussian mixture modeling," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 12(2), pages 235-260, June.
    6. Dawid Majcherek & Marzenna Anna Weresa & Christina Ciecierski, 2020. "Understanding Regional Risk Factors for Cancer: A Cluster Analysis of Lifestyle, Environment and Socio-Economic Status in Poland," Sustainability, MDPI, vol. 12(21), pages 1-15, October.
    7. Naeem, Muhammad Abubakr & Arfaoui, Nadia, 2023. "Exploring downside risk dependence across energy markets: Electricity, conventional energy, carbon, and clean energy during episodes of market crises," Energy Economics, Elsevier, vol. 127(PB).
    8. Mirza, Nawazish & Naeem, Muhammad Abubakr & Ha Nguyen, Thi Thu & Arfaoui, Nadia & Oliyide, Johnson A., 2023. "Are sustainable investments interdependent? The international evidence," Economic Modelling, Elsevier, vol. 119(C).
    9. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    10. Xiong, Yuyu & Guo, Hongxiang & Nor, Datin Dr Mariani Md & Song, Andong & Dai, Li, 2023. "Mineral resources depletion, environmental degradation, and exploitation of natural resources: COVID-19 aftereffects," Resources Policy, Elsevier, vol. 85(PA).
    11. Muhammad Asif & Jian-Qiao Li & Muhammad Azam Zia & Muhammad Hashim & Uzair Aslam Bhatti & Mughair Aslam Bhatti & Ahmad Hasnain, 2024. "Environmental Sustainability in BRICS Economies: The Nexus of Technology Innovation, Economic Growth, Financial Development, and Renewable Energy Consumption," Sustainability, MDPI, vol. 16(16), pages 1-29, August.
    12. Ben Ameur, Hachmi & Ftiti, Zied & Louhichi, Waël & Yousfi, Mohamed, 2024. "Do green investments improve portfolio diversification? Evidence from mean conditional value-at-risk optimization," International Review of Financial Analysis, Elsevier, vol. 94(C).
    13. Nguyen, Thi Thu Ha & Naeem, Muhammad Abubakr & Balli, Faruk & Balli, Hatice Ozer & Syed, Iqbal, 2021. "Information transmission between oil and housing markets," Energy Economics, Elsevier, vol. 95(C).
    14. Liu, Yanqiong & Lu, Jinjin & Shi, Fengyuan, 2023. "Spillover relationship between different oil shocks and high- and low-carbon assets: An analysis based on time-frequency spillover effects," Finance Research Letters, Elsevier, vol. 58(PC).
    15. Jiang, Wei & Chen, Yunfei, 2022. "The time-frequency connectedness among metal, energy and carbon markets pre and during COVID-19 outbreak," Resources Policy, Elsevier, vol. 77(C).
    16. Su, Chi-Wei & Yuan, Xi & Umar, Muhammad & Chang, Tsangyao, 2022. "Dynamic price linkage of energies in transformation: Evidence from quantile connectedness," Resources Policy, Elsevier, vol. 78(C).
    17. Zhao, Lu-Tao & Liu, Hai-Yi & Chen, Xue-Hui, 2024. "How does carbon market interact with energy and sectoral stocks? Evidence from risk spillover and wavelet coherence," Journal of Commodity Markets, Elsevier, vol. 33(C).
    18. Thomas Bittmann & Jens‐Peter Loy & Sven Anders, 2020. "Product differentiation and cost pass‐through: industry‐wide versus firm‐specific cost shocks," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1184-1209, October.
    19. Anca Gabriela Ilie & Marinela Luminita Emanuela Zlatea & Cristina Negreanu & Dan Dumitriu & Alma Pentescu, 2023. "Reliance on Russian Federation Energy Imports and Renewable Energy in the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(64), pages 780-780, August.
    20. Qi, Haozhi & Wu, Tiantian & Chen, Hao & Lu, Xiuling, 2023. "Time-frequency connectedness and cross-quantile dependence between carbon emission trading and commodity markets: Evidence from China," Resources Policy, Elsevier, vol. 82(C).

    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:23:p:7808-:d:1288834. 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.