Linking Public Finances’ Performance to Renewable-Energy Consumption in Emerging Economies of the European Union

Implementing public policies linked to sustainable development is a global challenge for most countries that focused their efforts on identifying and improving the factors that led to environment degradation. The current paper analyzes the influence of primary indicators of public finances (public d...

Full description

Saved in:
Bibliographic Details
Published in:Sustainability 2021-06, Vol.13 (11), p.6344
Main Authors: Florea, Nicoleta Mihaela, Bădîrcea, Roxana Maria, Meghisan-Toma, Georgeta-Madalina, Puiu, Silvia, Manta, Alina Georgiana, Berceanu, Dorel
Format: Article
Language:English
Subjects:
Alternative energy sources
Budgets
Clean technology
Emissions
Energy consumption
Energy industry
Environmental degradation
Public debt
Public policy
Sustainability
Sustainable development
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Implementing public policies linked to sustainable development is a global challenge for most countries that focused their efforts on identifying and improving the factors that led to environment degradation. The current paper analyzes the influence of primary indicators of public finances (public debt and budget deficit) on renewable-energy consumption (REN), for the emerging economies within the European Union. The main objective of this research is to understand the implications of fiscal measures on the sustainable development of a country and thus provide directions for stimulating renewable-energy consumption. The research starts with cross-sectional dependence analysis by using the Breusch–Pagan Lagrange multiplier (LM) test that is followed by cointegration relationships among variables by applying two appropriate panel-cointegration tests (Pedroni and Johansen). The research methodology is based on the fully modified ordinary-least-squares (FMOLS) method in order to test the long-run relationships, and on the pairwise Granger causality test in order to identify the direction of causality among variables. Results show unilateral influences from public debt and budget deficit on the analyzed variables, especially on renewable-energy consumption, and a bidirectional causality relationship between budget deficit and trade openness.
ISSN:2071-1050
2071-1050
DOI:10.3390/su13116344