Rethinking the governance of geothermal power industry: The roadmap for sustainable development

Abstract

The European geothermal heating market, at one time dominated by only a handful of countries, is set to experience a purple patch in the coming years as governments scramble to find an affordable alternative to expensive gas-fired heating. The primary focus of this study will be to investigate what effect will worldwide governance factors and economic growth on the geothermal energy output among the 27 European Countries from the time being 1996 to 2021. Using the autoregressive distributed lag, the findings shows that a significant increase in the geothermal energy industry sustainability can occur in European Union 14 (EU14) emerged economies using worldwide governance factors than in EU13 emerging economies. Among additional factors, instability in the political realm, regulatory issues in the area of quality, accountability, and voice-related issues, and the ability to curb corrupt practices contribute more positively to geothermal energy sustainability in EU14 emerged economies than in European Union 13 (EU13) emerging economies. On the other hand, government effectiveness contributes more positively to geothermal energy sustainability in EU13 emerging economies than in EU14 emerged economies. The finding implies that geothermal power sustainability in EU region countries can be significantly increased by mounting the level of worldwide governance determinants to achieve Energy Union aims by 2030. This will finally be spread to combat climate change and environmental pollution. All observations on projected calculations are valid. The confirmation was achieved with the aid of the three estimators used in the study which are the pooled mean group estimator, the mean group estimator, and the third one was dynamic fixed effect approach. This study recommended that these European countries need to put more effort in terms of being effective in worldwide governance indicators which will help in goal attainment at the societal and environmental levels. Those in charge of making laws in the European countries should get more engaged in worldwide governance scopes as this will assist in facilitating the security and sustainability of geothermal energy generation. Those in charge of making policies in the EU countries should as well lay more emphasis on the strategies that could be cointegrated and as well sustainable toward worldwide governance fractionation toward the achievement of the sustainability of geothermal power and this will drastically reduce the need or dependence on fossil fuel and emissions coming from carbon dioxide in the future time.