How investments into renewable sources affect economic development: A case of the EU countries
How investments into renewable sources affect economic development: A case of the EU countries

Summary/Abstract: Energy consumption trends reflect an increasing demand for energy. Waste sorting, energy stewardship, and investing in renewable energy sources can help mitigate the consequences of climate change. Sustainability is increasingly dependent on renewable energy sources, as they help ensure long-term economic growth and social stability without dependence on fossil fuels. Scientists, politicians, and investors are interested in the development of alternative energy sources. It is assumed that greater investments in renewable energy not only help reduce environmental pollution but also stimulate innovation and economic development. This article aims to assess the impact of investments in renewable energy sources on the economy and to identify the relationships between the scale of investments and changes in economic indicators. An eclectic specification of the economic growth model, based on the neoclassical conditional beta convergence model supplemented with various economic growth factors (using panel analysis), allowed for the testing of hypotheses and sub-hypotheses raised. The results revealed that investments in renewable sources do not directly impact economic development; however, they do affect other economic indicators that play a crucial role in the economic development process.

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