The impact of global competitiveness on the growth of bioenergy industry in EU‐28 region

Abstract

AbstractThis study investigates the effect of global competitiveness determinants on the growth of the bioenergy industry in the European Union (EU‐28) region from 1990–2018. Applying the panel fixed effect model, the results revealed that the bioenergy industry grows with an increase in the global competitiveness index. While human capital, innovation ecosystem, markets, enabling environment, and gross domestic product found to be increasing the growth. The finding implies that the growth of the bioenergy industry in EU‐28 developed countries can be effectively strengthened by improving the quality of human capital and enabling environment. Also, the result implies that the growth of the bioenergy industry in EU‐28 developing countries can effectively improve by increasing the quality innovations system and markets. These will eventually contribute to tackling global warming and environmental pollution. The estimated results are considered robust as validated by panel random effect and pooled Ordinary Least Squares estimators. The study recommends for EU‐28 countries to increase the efficiency of global competitiveness indicators to achieve social and environmental objectives. Policymakers should also invest more in global competitiveness factors to increase the supply and accessibility of bioenergy output. The authorities of these countries can equally emphasize on efficiency and sustainability of global competitiveness decomposition to achieve energy security and reduce dependency on fossil fuel.