Energy Transition and European Sub-Models. Restructuring EU Economy

Abstract

Abstract The European Union (EU) stands at the forefront of the global energy transition, committed to transforming its economy by adopting sustainable energy sources. This paper explores the diverse European sub-models of energy transition, highlighting different patterns among the EU Member States within the context of their particularities. Using the hierarchical cluster methodology and the panel data model with fixed effects for the period 2010-2021, we analyze the broader implications of the energy transition for the restructuring of the EU economy, with a focus on key sectors such as power generation, manufacturing, and social aspects. The study identifies significant challenges, including the need for substantial investment and technological innovation, as well as economic competitiveness, and social consequences. Additionally, the paper illustrates the complex interplay between climate objectives and economic restructuring within the EU, offering insights into the potential of the energy transition to not only mitigate climate change but also to drive socio-economic development and resilience.