Green energy policies and energy poverty in Europe: Assessing low carbon dependency and energy productivity

Abstract

This study examines the dynamics of the transition to green economies in relation to energy poverty in European countries. By employing augmented mean group (AMG) and fully modified ordinary least squares estimations (FMOLS), we find empirical evidence that indicates the influence of variables representing the processes of transitioning to green economies on energy poverty. To further elucidate these relationships, Granger causality analysis was conducted. The findings of this research contribute to the ongoing discourse surrounding the transition to green economies from the perspective of energy productivity. It is observed that improvements in energy productivity are associated with a reduction in the prevalence of energy poverty. Additionally, a noteworthy relationship is identified between energy poverty and the consumption of green energy, whereby an increase in energy poverty corresponds to an increase in the proportion of green energy within the overall energy consumption mix. Accordingly, it is recommended that public policies complement the transition to green societies with measures aimed at ensuring adequate energy provision for the population.