Solar energy production and economic growth: An analysis for EU countries

Abstract

Producing and consuming solar energy as a clean energy resource in economies has gained importance. The importance of solar energy is based on reducing costs due to technological developments. Responsive to whether the contribution of investing in solar energy to reach proclaimed new development strategies in the EU Green Deal has been one of the critical indicators for policymakers nowadays. In this context, this paper analysed the impacts of solar energy production on the economic growth of EU member countries. After the analysis, using a two-way fixed effects model and Driscoll-Kraay standard errors 2018-2021, solar energy production's positive and statistically significant effects on economic growth were found.