Energy efficiency policy: impact of green innovations

Abstract

The European energy policy is a core role in the development of the new model of the energy market and carbon-free economy in Ukraine. In the paper, the authors analyzed the key issues on the way to implement the European policy on increasing energy efficiency and green innovations which emphasized in pro et contra. The performance of national energy policy could be limited by the market instruments, the efficiency of the smart grid and perception of innovations in the energy sectors, institutional development in general. Thus, the paper aimed to indicate the impact of green innovations on sustainable development and the country’s energy efficiency for 2000-2019. The authors used economic and mathematical modeling. The Ordinary Least Square Model was used for the integral assessment of energy efficiency policy. The authors analyzed nine sub-indicators from four Sustainable development goals (Affordable and Clean Energy, Decent Work and Economic Growth, Responsible Consumption and Production, Combating Climate Change) and the indicator which characterized the innovation costs of industrial enterprises in the energy sector in Ukraine. The methodological instrument for checking the hypothesis and empirical justification was software stats models в Python 3.6.11. Due to the seven rounds of optimization, the authors developed significant functioning. Considering the finding of Ordinary Least Square Modelling, the authors highlighted the determinants which influenced the efficiency of energy policy: dependence on energy imports by-products, real GDP per capita, and final energy consumption. At the same time, the final energy consumption had less effect on the efficiency of energy policy and demonstrated the negative relationships with energy efficiency. The results of the models were verified using RESET and Jarque-Bera tests and confirmed the correctness of the proposed model. Keywords: energy policy, sustainable development goals, green innovations, energy efficiency.