Assessment of renewable electricity generation in low and high income countries

Abstract

Directing electricity production towards renewable energy sources has been attractive topic in energy literature for years. The role of renewable energy sources in a modern society that is technologically advanced is very important due to the constant growth of the electricity demand. In the process of developing the use of renewable energy sources, European countries are more or less successful. Therefore, the subject of this research is reflected in the assessment of electricity production from renewable energy sources in relation to the total electricity production and the economic development. The survey refers to 35 European countries that are distributed according to the level of GDP and data have been gathered for the period from 2004 to 2018. For the purposes of the analysis, the Autoregressive Distributed Lag (ARDL) model was applied, which determines the short-run and long-run impact of the regressors on the dependent variable. The obtained ARDL model in the short run indicates on a high reliability that exceeds 99.9%. In the long-run, the model highlights total energy consumption from renewable energy sources as a variable that has a significant long-run effect on the production of electricity from renewable energy sources.