Renewable Energy Policy, Economic Growth and Employment in EU Countries: Gain Without Pain?

31 Pages Posted: 9 Jun 2015

See all articles by Jurate Jaraite

Jurate Jaraite

CERE

Amin Karimu

Umeå University

Andrius Kažukauskas

Swedish University of Agricultural Sciences (SLU) - Center for Environmental and Resource Economics (CERE)

Paulius Kazukauskas

Independent

Date Written: June 8, 2015

Abstract

Given the intensifying debates whether governments should use industrial policies to promote particular renewable energy technologies, the main objective of this study is to investigate the long-run effects of renewable energy support policies on economic growth and employment in 15 European Union (EU) member states for the 1990-2012 time period by using panel-data time-series econometric techniques. The first hypothesis is that the EU’s renewable energy support policies lead to technological advancement, followed by economy growth, in the long-run. The second hypothesis states that these policies at least generate an increase in output and employment in the short-run. In summary, our results provide some evidence in support of the second hypothesis, but, in contrary to the similar studies, our findings do not support the first hypothesis that these policies promote growth in the long-run.

Keywords: economic growth, EU, Granger causality, panel cointegration, policy, renewable energy

JEL Classification: O44, Q43, Q48

Suggested Citation

Jaraite, Jurate and Karimu, Amin and Kažukauskas, Andrius and Kazukauskas, Paulius, Renewable Energy Policy, Economic Growth and Employment in EU Countries: Gain Without Pain? (June 8, 2015). Available at SSRN: https://ssrn.com/abstract=2615894 or http://dx.doi.org/10.2139/ssrn.2615894

Jurate Jaraite (Contact Author)

CERE ( email )

CERE
Economics Department, Umeå University
Umeå
Sweden

Amin Karimu

Umeå University ( email )

Andrius Kažukauskas

Swedish University of Agricultural Sciences (SLU) - Center for Environmental and Resource Economics (CERE) ( email )

Almas Allé 10
Umeå, 750 07
Sweden

Paulius Kazukauskas

Independent ( email )

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