Energy Transition in Non-Euro Countries from Central and Eastern Europe: Evidence from Panel Vector Error Correction Model

Simona Andreea Apostu, Mirela Panait (), Daniel Balsalobre-Lorente, Diogo Ferraz and Irina Gabriela Rădulescu
Additional contact information
Simona Andreea Apostu: Department of Statistics and Econometrics, Bucharest University of Economic Studies, 010552 Bucharest, Romania
Mirela Panait: Institute of National Economy, 050771 Bucharest, Romania
Daniel Balsalobre-Lorente: Department of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla-La Mancha, 45071 Toledo, Spain
Diogo Ferraz: Innovation Economics, Institute of Economics, University of Hohenheim, 70599 Stuttgart, Germany
Irina Gabriela Rădulescu: Department of Business Administration, Petroleum-Gas University of Ploiesti, 100680 Ploiesti, Romania

Energies, 2022, vol. 15, issue 23, 1-21

Abstract: The countries of Central and Eastern Europe, from the non-euro area, have completed the process of economic transition before joining the European Union. Achieving a certain level of economic development and membership in the European Union have generated their involvement in a new transition process, namely the energy transition. Concerns about promoting the low carbon economy have become increasingly complex for those countries that are interested in the environmental impact of economic activity. This study aims to analyze the process of energy transition in the countries of Central and Eastern Europe on the basis of the causality relationship among specific variables for the period 1990–2018. The study is based on cross-sectional panel data and the panel vector error correction model (PVECM). The efforts made by these countries by joining the European Union have generated economic development, with positive effects being recorded on the protection of the environment, a fact due to the strict regulations adopted and rigorous implementation at the national level. Foreign capital had a positive impact on the transition to a low carbon economy because most of the FDI flows attracted by the non-euro countries in the CEE come from Western Europe, i.e., from EU member countries, located either among the founders or among the countries that joined during the first waves of union expansion. Membership in the European Union facilitates the energy transition process for the non-euro countries of Central and Eastern Europe, but the new geopolitical events generate the reconfiguration of the European strategy of considering the need to ensure energy security.

Keywords: renewable energy transition; non-euro area; panel data; Granger causality; VECM (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1996-1073/15/23/9118/pdf (application/pdf)
https://www.mdpi.com/1996-1073/15/23/9118/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:15:y:2022:i:23:p:9118-:d:990625

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().