Abstract
A demonstration of the relationship between the share of renewables in gross marginal energy and selected countries’ economic growth is the basis of this research. The paper seeks to investigate mutual correlations between renewable energy sources and economic growth for two EU economies and how it influences their fluctuations (increase and decrease). The comparative analysis of results was carried out for less-income Polish and high-income Swedish economies. This research used a regression model to answer the research questions examining the presence of correlations between renewable energy sources in gross marginal energy consumption and economic growth. This study analyzes data starting from 1991 to 2022. The results indicated a positive correlation (statistical significance) between Gross Domestic Product and Gross National Income variables for Sweden (84.6% and 83.7%, respectively) and Poland (79.9% and 79.2%, respectively), which influence the use of renewable energy sources. The findings also reveal that the higher economic growth caused by the use of renewables is observed for the leading countries but at the same time the risk of a greater recession is much more likely than in other countries. These findings would help government officials and policymakers to better understand the role of renewable energy in the economic growth of these countries. This study has contributed to the literature on renewable energy sources and statistical reports under the EU energy sector framework.
Highlights
The growing “green” paradigm to minimalize energy use and its effect on climate change highlights the necessity for shifting from a fossil-based economy to renewablesbased economy or bio-based economy [1]
The authors of the paper referred to other works that used similar regression models with a fixed-effects approach in the context of renewables use and its impact on economic growth [16,63,64]. The researchers focused their analysis on the relations between three variables (GDP, Gross National Income (GNI), and renewable energy sources (RES)), which means that it was investigated whether the changes in the shaping of the X variables (GDP and GNI) influenced the changes in the Y variable (RES)
The goal of the study was achieved by depicting the positive correlations between energy-related variables on the level of economic growth in Poland and Sweden
Summary
The growing “green” paradigm to minimalize energy use and its effect on climate change highlights the necessity for shifting from a fossil-based economy to renewablesbased economy or bio-based economy [1]. The authors stated that the higher the share of RES, the better the economic growth and higher the GDP and GNI indicators This choice of countries was made due to the existence of significant differences between them, economically and related to renewable energy sources; this being the reason why the research concerning Sweden and Poland (no other well-developed and developed countries) is a randomized trial conducted among well-developed and developed European countries. Over 82% of the energy production in Poland is the energy obtained from non-renewable sources [2] Another reason for choosing these two countries is a similar situation regarding economic growth, as the GDP ratio in 2015–2019 was at the given level. We selected a variety of methods and research, performed to analyze the relationship between these countries, but mainly to investigate the impact of economic growth on the creation of power plants powered by renewable energy sources
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