The emergence of the effects and determinants of the energy paradigm changes on European Union economy

Abstract

Analyzing of the effects and the determinants of the energy paradigm changes on influencing the economic growth in European Union starts from the assumption that the economy is highly dependent of energy consumption in achieving of the economic growth and welfare for population. Consequently, the changes in the energy paradigm imply significant transformations in the production structures and their evolution. The aim of the paper is to present and evaluate the effects and determinants of the energy paradigm changes on assuring economic growth in European Union, by using the panel data approach and its subsequent techniques. In this respect, there was considered the evolution of nine economic variables across 30 countries, representing the EU member States during the examined period, plus Iceland and Norway, in order to revile direct and irrefutable connections among these variables in shaping the new energetic paradigm in European space. The results obtained during the research confirm that all nine variables are determinant and significant elements in shaping a new and proactive energy policy and it undoubtedly contribute in achieving of the sustainable economic development