Energy structure and carbon emission: Analysis against the background of the current energy crisis in the EU

Abstract

The Ukraine war, evolving from a geopolitical crisis to an energy crisis, calls attention to understanding the impacts of restarting oil- and coal-fired power plants on carbon dioxide (CO2) emissions. To fill the remaining research gaps relating to energy structure and CO2 emissions in Europe, in this study, we systematically investigate the carbon emissions (CE) and their influencing factors, especially those energy-related, from 1995 to 2020. We find that European Union (EU) countries are currently at different stages of the energy transition. The CO2 emissions in the EU show clear positive spatial dependence. Thus, we deploy the spatial Durbin model to analyze the influences of consuming coal, oil, natural gas, hydropower, solar and wind energy, nuclear power, and other renewable energy sources on CE. It is observed that natural gas is the only fossil fuel source that does not have a significant positive effect on CO2 emissions. The developments of hydropower, nuclear power, and other renewable energy sources have significant negative impacts on CE. Estimation results of direct and indirect effects clearly show that many energy sources have spillover effects, suggesting that to fulfill future climate targets, joint-effort must be made among the EU member states.