Influence of Renewable "Green" Energy on the Economic Development of the EU States

Iryna Ksonzhyk,Yuliana Lavrushchenko,Oleksiuk Marcin,Volodymyr Saienko,Buryk Zoriana

doi:10.13189/eer.2021.090507

Abstract

This article reveals the economic importance of solar energy development in the European Union in recent years. It defines the structure of energy consumption in EU countries. This structure allows us to determine how much income energy companies receive from solar electricity consumption by the population and industry. The article determines that solar energy is essential for the countries. Therefore, like any other sectors of the national economy, it forms the gross domestic product. In addition, energy companies pay taxes to the budget, which shows the economic importance of solar energy development, comparing state investments with tax revenues. The research aims to show the financial importance of solar energy for the state, i.e., how much income the state will receive in the budget by supporting solar energy development. To achieve the goal, methods of economic analysis and economic-mathematical modeling were used. They allowed confirming the hypothesis about the feasibility of investing in solar energy in European countries. The research is based on the statistical materials of 2014-2019 on the generation of solar energy, investments in it, and state budget revenues from the taxation of produced solar power. This study proves for the first time that an increase in solar energy production is beneficial to the state, despite the low level of return on investment in the construction of solar power plants by the state. Based on economic and mathematical modeling results, a linear dependence was built, which allows forecasting the volume of tax revenues from the construction of solar power plants and electricity prices. Thus, the hypothesis about the economic feasibility of investing in solar power is confirmed.

Highlights

Modern society lives in a difficult time of limited resources, which are gradually decreasing every year
That is why the financial aspect in the field of solar energy is quite often ignored by scientific researchers because the main goal of solar energy development is environmental and political
The uniqueness of this study is to show the financial and especially fiscal importance of solar energy production in the EU, as other researchers have already confirmed the economic impact

Summary

Introduction

Modern society lives in a difficult time of limited resources, which are gradually decreasing every year This leads to the prerequisites for the development of solar energy, which is one of the key areas of transition from the consumption of carbon fuels to renewable energy sources and the use of zero greenhouse gas emission technologies [10]. Developed countries around the world that plan to reduce CO2 viscosities have developed the concept of a gradual transition to renewable energy resources [11] This development is hindered by one factor - financial. That is why the financial aspect in the field of solar energy is quite often ignored by scientific researchers because the main goal of solar energy development is environmental and political Solar energy makes it possible to obtain resources even in those countries that do not have natural deposits of oil and gas and have to buy energy from other countries, sacrificing their economic and political independence. To a greater extent, such countries are countries of the European Union, which have a constant shortage of their own energy resources and are forced to compensate for them with imports from other countries, in particular Russia

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