Thriving or Surviving in the Energy Industry: Lessons on Energy Production from the European Economies

Abstract

The energy industry has a major impact on the sustainability level of global economies, from job creation to resource efficiency and environmental impact. The aim of our study was to examine the phenomenon of energy production and its main determinants in 37 European economies during the period of 2011–2021. The methodological approach entailed the use of the panel first-difference generalized method of moments (GMM). The empirical results show that the relationship between energy production and predictors such as imports, energy prices, energy productivity, and energy efficiency was monotonic. At the same time, our results indicate a relationship between energy supply and energy production, imports, productivity, and prices. Moreover, energy production depends significantly on the energy productivity, primary energy consumption, and energy imports.

Keywords

• economic growth
• energy supply
• productivity
• imports
• prices
• capacity of production