Energies, Vol. 18, Pages 6475: Socio-Economic Drivers of Renewable Energy Consumption: A Dynamic Panel Analysis of Rural and Urban Contexts in Europe

Energies, Vol. 18, Pages 6475: Socio-Economic Drivers of Renewable Energy Consumption: A Dynamic Panel Analysis of Rural and Urban Contexts in Europe

Energies doi: 10.3390/en18246475

Authors:
Henrique Viana Espinosa de Oliveira
Ana Cristina Brasão
Victor Moutinho
Luís Marques

This study examines the patterns of renewable energy consumption across 29 European countries from 2000 to 2024. We utilised Bias-Corrected estimation techniques to analyse the relationship between renewable energy consumption, Human Development Index (HDI), labour force, and population dynamics, employing three distinct estimation models: global, rural, and urban. The results indicate that higher levels of human development and a larger labour force are positively associated with renewable energy consumption in the global and rural models, while the urban model shows an opposite effect for the labour force. Conversely, population growth is negatively related to renewable energy consumption in the global and rural contexts but positively in urban areas. These findings underscore the importance of socio-economic and demographic contexts in shaping renewable energy outcomes. They suggest that renewable energy can support economic and social development, but its effectiveness depends on regional structural conditions. From a policy perspective, the renewable transition should be approached as both an environmental and socio-economic strategy, aligning clean energy goals with employment generation, education, and inclusion, particularly in line with SDGs 7, 8, 10, and 13. Policies that promote green skills, innovation, and equitable regional investment can enhance social acceptance, competitiveness, and sustainable growth across Europe.