Renewable Energy in the European Union: An Econometric Approach to Trends and Effects

The European Union is working for a global agreement to control climate change. Several steps have been taken in order to cut its emissions and implement energy efficiency measures. In this context, this paper analyzes the role of renewable energies in the European Union, studying their evolution and shift-share components, thus identifying the competitive effects of the different countries. Furthermore, an econometric panel model is developed with the aim of explaining the impact of economic growth and renewable energies in the evolution of CO2 emissions within the European Union.