Relationship between Renewable Energy Policies and Economic Growth in European Countries
DOI:
https://doi.org/10.47672/ejt.1858Keywords:
Renewable Energy, Policies, Economic GrowthAbstract
Purpose: The aim of the study was to assess the relationship between renewable energy policies and economic growth in European countries.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: Numerous studies have investigated the relationship between renewable energy policies and economic growth, consistently finding evidence of a positive correlation. By incentivizing the adoption and development of renewable energy sources such as wind, solar, and hydroelectric power, governments stimulate investment, create jobs, and foster innovation within the green energy sector. These policies not only contribute to reducing greenhouse gas emissions and mitigating climate change but also enhance energy security and reduce dependence on fossil fuels. Moreover, the deployment of renewable energy technologies often leads to cost savings over time due to decreasing production costs and the avoidance of externalities associated with traditional energy sources. Additionally, the transition towards renewables often fosters technological advancements and spurs productivity gains, further bolstering economic growth.
Implications to Theory, Practice and Policy: Porter's diamond model, innovation diffusion theory and political economy theory may be use to anchor future studies on assessing relationship between renewable energy policies and economic growth in European countries. Evaluate the sector-specific impacts of renewable energy policies on economic growth, considering industries such as manufacturing, services, and agriculture. Develop integrated policy frameworks that combine renewable energy policies with broader economic development strategies.
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