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Advisor(s)
Abstract(s)
The expected gains from RES deployment to the reduction of carbon dioxide emissions (CO2) and
the cut-off of external dependence of electricity sources could be important. However, it is crucial
to understand the determinants of RES growth to help policymakers drawing effective energy
polices, involving a commitment of both citizens and governments. In this paper, we use novel
panel econometric tools (taking into account structural breaks and cross-section dependence)
and find evidence of nonstationary issues and cointegration issues between renewable energy
production and its drivers (CO2 emissions, GDP per capita, energy use and dependency). The
results thus reveal that non-stationary issues should be attended, otherwise they could be biased.
Using suitable estimators (DOLS, FMOLS) with two different data sets and different proxies and
taking common factors into account by MG estimates, we find that there is no environmental
concerns effect explaining the growth of renewables in European countries. However, national
revenues, energy consumption (demand effect) and energy dependency have a positive impact
on renewables deployment. Considering these results, economic assistance (subsidies) might be
a mean to increase further the renewables deployment in EU countries and education about
renewables deployment is needed.
Description
Keywords
Renewable energy production Non-stationary issues Panel cointegration Common factors Breaks CO2 emissions Energy dependency