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1 2024

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Political and economic rationale for the development of renewable energy in European union countries

Tomala Magdalena

Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska

2024

z. 191

551--570

Purpose: There are two factors related to the implementation of the Green Deal. The first relates to economic issues and depends on economic development. The second is related to political actions. The aim of this article is to analyze the impact of political and economic factors on the renewable energy sector. Assuming the idea of common priorities in the EU, it can be hypothesized that the action programs for renewable energy implemented by the EU should enable countries to accelerate their efforts to develop this sector of the economy. Design/methodology/approach: Firstly, k-means analysis will be employed to cluster EU countries based on whether they would achieve the declared target of a 20% share of renewable energy in gross final energy consumption. Secondly, the application of k-means will facilitate the division of countries into groups based on their economic affluence, distinguishing them between richer and poorer nations. Next, the study will utilize the ANOVA, which help determine if the actions carried out by the EU are sufficient to achieve the increasing share of renewable energy. It will consider the diversity of countries in terms of economic and political factors. Findings: The first hypothesis, regarding the significance of the political factor, was successfully confirmed. The analysis conducted revealed that EU countries vary in their implementation of the EU renewable energy objectives. The second hypothesis regarding the significance of the economic factor has been dismissed. It was not confirmed that the degree of economic development has an impact on the growth of the renewable energy sector. Originality/value: It can be assumed that all EU countries would support the policy toward the growth of renewable energy. While various factors play a crucial role in shaping the renewable energy market, it is difficult to find an analysis that explains the lack of significant progress in this sector of the economy.