Facebook LinkedIn Twitter
Shop

This is an Free article. You will receive access to the full text.

Policy-Induced Expansion of Solar and Wind Power Capacity: Economic Growth and Employment in EU Countries

Free Article

Abstract:
Given the intensifying debates on whether governments should promote particular renewable energy technologies, the main objective of this study is to investigate the long-and short-run effects of policy-induced expansion of renewable solar and wind technologies on economic growth and employment in 15 European Union (EU) member states during 1990-2013 by using panel-data time-series econometric techniques. Instead of relying on renewable energy consumption or generation as commonly done in the literature, we focus on the capacity for solar and wind power generation, which is largely a consequence of the EU's renewable energy policies. In summary, we find that, to date, renewable energy policy-induced wind and solar power capacity promotes growth and/or employment in the short run, but these capacity increases do not stimulate economic growth in the long run in the EU-15 region. In fact, our results tend to support the opposite relationship: increases in wind and solar power capacity are associated with negative economic growth, at least at the total economy level. Keywords: Economic growth, Employment, European Union, Granger causality, Panel cointegration, Policy, Renewable energy capacity, Solar energy, Wind energy

Download Executive Summary Download PDF

Keywords: Economic growth, Employment, European Union, Granger causality, Panel cointegration, Policy, Renewable energy capacity, Solar energy, Wind energy

DOI: https://doi.org/10.5547/01956574.38.5.jjar

References: View References


Published in Volume 38, Number 5 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.