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SOLAR PHOTOVOLTAIC INVESTMENTS AND ECONOMIC GROWTH IN EU: ARE WE ABLE TO EVALUATE THE NEXUS?

Title
SOLAR PHOTOVOLTAIC INVESTMENTS AND ECONOMIC GROWTH IN EU: ARE WE ABLE TO EVALUATE THE NEXUS?
Type
Article in International Conference Proceedings Book
Year
2015
Authors
Grijo, T
(Author)
Other
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Publicação em ISI Web of Knowledge ISI Web of Knowledge - 0 Citations
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Authenticus ID: P-00K-NV4
Abstract (EN): A core question in energy economics may be stated as follows: Is the cost-benefit analysis being correctly applied when we encourage investments in renewables, as an alternative to the traditional energy sources? The relationship between energy consumption and economic growth has been extensively treated within economics literature. Yet, literature on the nexus between renewables and GDP is still scarce. In this article we intend to explore the relationship between a specific type of renewable generation technology (Solar PV) and GDP. Using a fixed effects panel data methodology and a sample of six EU countries, we conclude that a 1% increase in solar PV installed capacity and in energy dependence has a positive impact on GDP of 0.0129% and 0, 003714% respectively. On the other hand, a 1% growth on greenhouse gas emissions negatively affects GDP by -0.015 %. Further evidence reveals that, in terms of country specific analysis, Germany, France and UK have more significant estimations for fixed effects. In fact, Germany is a solar PV technology producer, the UK has a strong connection between the Solar PV sector and the industry sector and France has a very active nuclear sector, with little pressure for both renewables development and CO2 reductions.
Language: English
Type (Professor's evaluation): Scientific
No. of pages: 8
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