Renewable energy consumption and economic efficiency: Evidence from European countries

Halkos, George and Tzeremes, Nickolaos (2013): Renewable energy consumption and economic efficiency: Evidence from European countries.

Abstract

This paper examines the relationship between renewable energy consumption and economic efficiency. For this reason conditional Data Envelopment Analysis (DEA) estimators alongside with nonparametric regressions are applied in a sample of 25 European countries for the year 2010. Our results reveal that renewable energy consumption has a positive effect on countries’ economic efficiency for lower consumption levels while for higher levels the analysis reveals mixed effects, which are also subject to regional disparities. Finally, it appears that the effect of renewable energy consumption on countries’ economic efficiency depends also on countries’ specific regional characteristics as well as on the environmental policies adopted.

• Item Type: MPRA Paper
• Language: English
• Keywords: Renewable energy consumption; economic efficiency; data envelopment analysis; nonparametric regression
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q40 - General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q20 - General; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60 - General; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O44 - Environment and Growth

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