Affiliation:
1. University of Rijeka, Croatia
2. University of Maribor, Slovenia
Abstract
The adoption of the Paris Agreement and the EU Green Deal has put the European Union on the path to a low-carbon, sustainable economy. As one of the key points to achieve sustainable economic growth, the low-carbon transition requires the use of renewable energy sources and the increase of energy efficiency. The aim of this study is therefore to analyse the impact of a higher share of renewable energy sources and energy efficiency on economic growth. The panel data analysis was conducted for 27 EU Member States in the period 2009-2021. The results show a statistically significant and positive relationship between renewable energy sources and energy efficiency and economic growth. This means that sustainable development can only be achieved by taking into account the environmental component, which attracts investment and boosts economic growth.