Sustainable Development and Competition: new evidence from EU countries

Abstract

In this paper we present energy efficiency targets indicators of sustainable development and we discuss the role of competition, on promoting and enhancing sustainability and pricing issues. For this purpose, we present statistical evidence of energy efficiency targets indicators, we highlight the degree of competition of electrical markets in various member states and we present the effect of the degree of competition on electrical prices and energy efficiency targets. The empirical results indicate that the higher the degree of competition in electrical markets, the lower the electrical prices. Furthermore, less concentrated electrical markets exhibit higher rates of greenhouse gas emissions and share of renewable energy in total energy consumption than in the less competitive markets. Even though the empirical results do not reveal a clear-cut picture in regard with the effect of competition on energy efficiency indicator, EU28 countries have a primary energy consumption of almost 1.526 Mtoe in 2019 and they are quite close to achieve the energy efficiency target of Europe 2020 strategy implemented by Directive 2012/27/EU on energy efficiency.