How Renewable Energy Affect Economic Growth in a Member State of the European Union? VECM Evidence from the Netherlands
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Keywords:
Renewable Energy, Economic Growth, Technological Development, Time Series Analysis, Vector Error CorrectionAbstract
Energy has an important quality considering that it provides opportunities to compete in
international markets and triggers growth mechanisms. In this respect, both non-renewable and renewable
energy sources are important cost elements in production functions, and on the other hand, they are also an
important manufacturing input. In addition to the fact that fossil energy resources are not infinite in nature,
global and environmental problems have led the world to search for new energy sources. This search has
led humankind to renewable energy sources that exist in nature, do not cause environmental degradation,
and can quickly renew themselves in case of depletion. The problems arising from the use of non-renewable
energy resources and their disadvantages in terms of sustainability have recently increased the importance
given to renewable energy resources. In this context, analyzing the relationship network between renewable
energy and economic growth has critical importance in determining more efficient and effective growth
strategies and policy alternatives. The aim of this study is to investigate the effects of renewable energy
supply, renewable energy R&D expenditures and technological innovations in renewable energy on
economic growth in the example of the Netherlands which is a member state of EU. The findings obtained
as a result of the VECM model applied for the 1990-2021 research period show that the developments in
renewable energy supply and renewable energy technologies in the Netherlands has a positive impact on
economic growth.
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