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Dynamic spillover effects of renewable energy efficiency in the European countries

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Abstract

Renewable energy has gained significant attention due to the growing concern for environmental sustainability and the high reliance on energy imports in European countries. In this study, we use a two- stage approach to assess renewable energy efficiency (REEF) of European countries. Initially, we employ the data envelopment analysis (DEA) method to quantify the efficiency of renewable energy. Subsequently, we investigate the factors influencing REEF between 2005 and 2020. Our findings reveal a generally high level of REEF across European countries, but some countries have become worse in this regard (e.g., France, Ukraine, Russia, Belgium, Germany, Norway, and Serbia). In order to find the causes of these changes, we considered the explanatory variables of gross domestic product (GDP), energy price, renewable energy consumption, information and communications technology (ICT), and industrial value added in a spatial system generalized method of moments (spatial SYS-GMM) model. The findings provide confirmation of the spatial spillover effects of REEF within European countries. The strongest positive effect is related to energy prices. In simpler terms, as energy prices rise, the efficiency of renewable energy has increased in European countries. Additionally, ICT and renewable energy consumption have positive impacts, too. But GDP and industrial value added, have decreasing effects. Based on these findings, we put forth several policy suggestions aimed at enhancing the efficiency of renewable energy in European countries.

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Notes

  1. . Common Set of Weight.

  2. In these studies, the proportion of oil and coal consumption has been used, and due to the greater relevance of renewable energy consumption to the subject under study, we replaced this variable with the renewable energy consumption.

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Authors and Affiliations

  1. Department of Economics, Shiraz University, Eram Paradise, Eram Square, Shiraz, 7194685115, Iran

    Neda Jamshidi

  2. Department of Economics, Meybod University, Defae-Moghaddas Square, Meybod, 8961699557, Iran

    Mehdi Emami Meybodi

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  1. Neda Jamshidi
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Neda Jamshidi: Methodology, formal analysis, writing—original draft preparation, Software, Data curation.

Mehdi Emami Meybodi: Conceptualization supervision, formal analysis, resources, Writing- Reviewing and Editing, Visualization.

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Correspondence to Mehdi Emami Meybodi.

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Jamshidi, N., Meybodi, M.E. Dynamic spillover effects of renewable energy efficiency in the European countries. Environ Sci Pollut Res 31, 11698–11715 (2024). https://doi.org/10.1007/s11356-023-31815-8

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