Towards a greener future: Renewable energy and economic sustainability in Europe

Muhammad Usman, Shahbaz Imran, Ahsan Akbar () and Marcela Sokolova
Additional contact information
Muhammad Usman: University of Education
Shahbaz Imran: University of Education
Ahsan Akbar: Guangzhou City University of Technology
Marcela Sokolova: University of Hradec Kralove

E&M Economics and Management, 2025, vol. 28, issue 3, 128-143

Abstract: The transition towards the use of renewable energy sources has been considered for a long time concerning their capabilities in promoting economic sustainability. Therefore, this study aims to examine the role of renewable energy in achieving economic sustainability in the European region. Empirical data was collected with the help of Eurostat to analyze the proposed relationship. Macro-level data from twenty-eight (28) European countries is collected, and the final dataset contains statistics between 2014 and 2023. Analyzing the findings of ordinary least squares and system GMM regression tests, as well as the different proxies of both renewable energy and economic sustainability, a positive relationship is found between renewable energy and economic sustainability. Moreover, increased availability of renewable energy (for instance, wind, solar, and the like) is regarded as a way of enhancing economic performance, creating more jobs, and saving the cost of energy. The outcomes also indicate that upgrading renewable energy infrastructure improves economic growth, promotes innovation, and stabilizes the economy’s growth in the long run. This study adds to the current discourse on the efficiency of renewable energy and opens up a new area of research for scholars and policymakers.

Keywords: Renewable energy; economic sustainability; European Union (search for similar items in EconPapers)
JEL-codes: O44 Q01 Q20 Q42 Q43 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.15240/tul/001/2025-5-020

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:bbl:journl:v:28:y:2025:i:3:p:128-143

DOI: 10.15240/tul/001/2025-5-020

Access Statistics for this article

More articles in E&M Economics and Management from Technical University of Liberec, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Vendula Pospisilova ().