Assessing the Role of Renewable Energy in the Sustainable Economic Growth of the European Union

Laima Okunevičiūtė Neverauskienė, Virgilijus Dirma, Manuela Tvaronavičienė () and Irena Danilevičienė
Additional contact information
Laima Okunevičiūtė Neverauskienė: Department of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, LT-10223 Vilnius, Lithuania
Virgilijus Dirma: Institute of Business and Economics, Faculty of Public Governance and Business, Mykolas Romeris University, LT-08303 Vilnius, Lithuania
Manuela Tvaronavičienė: Department of Business Technologies and Entrepreneurship, Faculty of Business Management, Vilnius Gediminas Technical University, LT-10223 Vilnius, Lithuania
Irena Danilevičienė: Department of Financial Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, LT-10223 Vilnius, Lithuania

Energies, 2025, vol. 18, issue 4, 1-23

Abstract: The adoption of renewable energy sources offers significant economic and sustainability benefits. These sources—solar, wind, hydro, biomass, and geothermal—are crucial for transitioning to a sustainable, low-pollution energy model. Key benefits of renewable energy include job creation, reduced energy costs, decreased reliance on imported resources, minimized environmental impact, and long-term economic stability. Renewable energy also plays a vital role in achieving environmental and sustainability goals. By reducing dependence on imported energy resources, it enhances energy security. Countries investing in renewables lower their reliance on international supply chains and geopolitical risks, which is particularly relevant for European Union nations historically dependent on energy imports. Domestic renewable energy resources help stabilize prices and ensure a consistent long-term energy supply. This study aimed to assess the impact of renewable energy sources on the economy and sustainable development in the European Union. Data for all variables were collected from the Eurostat database. The unbalanced panel data sample consisted of 27 EU countries (N = 27), covering the period 2001–2022 (T = 22). The analysis and generalization of the scientific literature compared theoretical and practical statements, econometric models, and the least squares method. Here, the hypothesis that “the transition to renewable energy sources will have a smaller negative impact on economic growth when the country is more dependent on imported energy sources” was accepted, and this means that using renewable energy sources not only contributes to environmental goals and climate change mitigation but also provides various economic benefits, including job creation, lower energy prices, greater energy security, and long-term sustainability. It is essential in the transition to a cleaner and more sustainable economy.

Keywords: economic growth; renewable energy; sustainability (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: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/18/4/760/pdf (application/pdf)
https://www.mdpi.com/1996-1073/18/4/760/ (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:18:y:2025:i:4:p:760-:d:1585531

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 ().