Renewable Energy Use and Energy Productivity: A Panel Data Analysis

Abstract

This study emphasizes renewable energy source use's effects on productivity, competitiveness, and growth. The hypothesis of the study was tested with panel data analysis on European and Central Asian countries. Panel data analysis covered 15 Eurasian countries with data from 1990-2014. In our hypothesis, renewable energy use increases income by increasing efficiency in production. The model established reveals the difference between various energy types and renewable energy. Analysis outputs support the study hypothesis. According to the results, the increase in the share of renewable energy use in total energy use affects per capita income positively. On the other hand, an increase in the share of fossil fuels decreases per capita income. Our study suggests that countries aiming for better economic growth should increase their use of renewable energy.