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Effects of Renewable and Non-Renewable Energy Consumption, GHG, ICT on Sustainable Economic Growth: Evidence from Old and New EU Countries

Author

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  • Miloš Žarković

    (Faculty of Economics, University of Montenegro, 81000 Podgorica, Montenegro)

  • Slobodan Lakić

    (Faculty of Economics, University of Montenegro, 81000 Podgorica, Montenegro)

  • Jasmina Ćetković

    (Faculty of Economics, University of Montenegro, 81000 Podgorica, Montenegro)

  • Bojan Pejović

    (Faculty of Economics, University of Montenegro, 81000 Podgorica, Montenegro)

  • Srdjan Redzepagic

    (Groupe de Recherche en Droit, Économie et Gestion, Graduate School of Economics and Management, Université Côte d’Azur, 06300 Nice, France)

  • Irena Vodenska

    (Department of Administrative Sciences, Metropolitan College, Boston University, 1010 Commonwealth Avenue, Boston, MA 02215, USA
    Global Development Policy Center, Boston University, Boston, MA 02215, USA)

  • Radoje Vujadinović

    (Faculty of Mechanical Engineering, University of Montenegro, 81000 Podgorica, Montenegro)

Abstract

Balancing of different dimensions of development—economic, environmental, social, is an imperative of policies and strategies of sustainable growth, which are practiced today in the EU and globally. The main aim of our paper is to investigate the relationship between renewable (REC) and non-renewable energy consumption (NREC), greenhouse gas (GHG) emissions and share of ICT in total exports, on one hand, and GDP p.c. on the other. We created a model for EU countries divided in two groups—old and new EU members, by using PMG and ARDL models. Considering the size and structure of the sample of countries, the selected variables in the model and the relevant period (2000–2020), to a certain extent, we filled the research gap in the existing literature. Our results indicate that a 1% increase in the share of REC and ICT in total exports leads to GDP p.c. growth in the long run by 0.151% and 0.168% in old EU countries, i.e., 0.067% and 0.039% in new EU countries, respectively. Contrary, an increase of NREC by 1% has a significant and negative impact on GDP p.c. in the long run, in both groups, leading to a decrease of economic growth by 0.512% in the old and 1.306% in the new EU group. We find a 1% increase of GHG emissions was accompanied by an increase of GDP p.c. in new EU countries by 0.939%, while that impact is insignificant in old EU countries in the long run. We conclude our paper with final remarks and policy implications.

Suggested Citation

  • Miloš Žarković & Slobodan Lakić & Jasmina Ćetković & Bojan Pejović & Srdjan Redzepagic & Irena Vodenska & Radoje Vujadinović, 2022. "Effects of Renewable and Non-Renewable Energy Consumption, GHG, ICT on Sustainable Economic Growth: Evidence from Old and New EU Countries," Sustainability, MDPI, vol. 14(15), pages 1-27, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9662-:d:881384
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