The impact of energy consumption on economic growth in developed and post-transition countries of European Union

Tanja Fatur Šikiæ ()
Additional contact information
Tanja Fatur Šikiæ: Real Estate Valuation Advisor, Primorje-gorski kotar County, Department for Physical Planning, Construction and Environmental Protection, Rijeka, Croatia

Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, 2020, vol. 38, issue 2, 475-497

Abstract: This paper aims to investigate the impact of renewable and non-renewable energy consumption on economic growth. Analysis was conducted for 16 developed EU member states over the period from 1990 to 2018 and 11 post-transition EU member states over the period from 1995 to 2018. We also compared obtained results with results for the period until 2014. The pooled mean group (PMG) model was used to capture dynamic relationship in a short and long run. The empirical results show that consumption of both energy sources has an impact on economic growth in the long run in both groups of countries. However, the results differ between the developed and post-transition EU countries. In developed EU countries renewable energy consumption has a negative impact on economic growth, while non-renewable energy consumption has a positive impact. In post-transition EU countries results are opposite, meaning that in these countries there is a tendency to shift from less efficient and more polluting energy sources to more efficient energy options which can be a stimulus to economic growth.

Keywords: non-renewable and renewable energy consumption; economic growth; developed and post-transition EU countries (search for similar items in EconPapers)
JEL-codes: C33 O44 Q43 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.efri.uniri.hr/upload/Zbornik%202_2020/15-Fatur-Sikic-2020-2.pdf (application/pdf)

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:rfe:zbefri:v:38:y:2020:i:2:p:475-497

Access Statistics for this article

More articles in Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics from University of Rijeka, Faculty of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Danijela Ujcic ().