Sustainable development, renewable energy transformation and employment impact in the EU

Figures & data

Figure 1. Distribution of key variables: Renewable energy sources, non-renewable energy sources, total employment rate and GHG emissions.

Table 1. PVAR results

Equation:	Independent var: Employment lag	RES lag	Non-RES lag	GDP lag	GHG emissions lag
Employment	0.498***	0.036***	−0.031**	0.076***	−0.037*
	(0.168)	(0.008)	(0.015)	(0.028)	(0.022)
RES	6.202**	0.490***	0.181	−1.934***	−1.066***
	(2.790)	(0.158)	(0.293)	(0.564)	(0.391)
Non-RES	4.214**	−0.118	0.607**	−1.876***	−0.093
	(2.124)	(0.114)	(0.257)	(0.482)	(0.311)
GDP	0.033	0.026***	0.002	0.986***	−0.058**
	(0.159)	(0.008)	(0.014)	(0.025)	(0.023)
GHG Emission	0.421	−0.001	0.062**	−0.036	0.916***
	(0.324)	(0.017)	(0.029)	(0.061)	(0.044)
N	489
Hansen’s J	69.549
	(p = 0.654)

Note: Lags up to a maximum of 5 lags of each of the variables in the model was used as valid instruments in the estimation to resolve potential endogeneity problems based on GMM style of instrumentation. RES denote renewable energy sources and GDP is in per capita terms. Robust standard errors are used to correct for potential heterogeneity. Standard errors are in parentheses, * p < 0.10, ** p < 0.05, *** p < 0.01

Figure 2. Forecast Error Variance Decomposition (FEVD), shown as 5 and 10 years ahead responses to one standard deviation shock to non-renewables (left panel) and renewables (right panel). The measurements show how much shocks in renewables and non-renewables contribute to the future variability of the variables.

Table A1. Stability test for EU PVAR model

Eigenvalue
Real	Imaginary	Modulus
0.986	0.156	0.998
0.986	−0.156	0.998
0.779	0.000	0.779
0.571	0.000	0.571
0.255	0.000	0.255

Table A2. Optimal lag selection for EU sample model

lag	CD	J-statistic	J p-value	MBIC	MAIC	MQIC
1	0.999	84.173	0.219	−370.785	−65.827	−186.234
2	0.999	40.597	0.826	−262.708	−59.403	−139.675
3	0.999	13.207	0.974	−138.445	−36.793	−76.928

Table A3. Pesaran (2007) CIPS unit root test

Variable	Lag	Test statistic	P-value
Employment	1	−1.580	0.057
RES	1	−4.945	0.000
Non-RES	1	−12.226	0.000
GDP	1	−1.198	0.115
ΔGDP (first difference)	1	−1.795	0.036
GHG Emission	1	0.070	0.528
Δ GHG Emission (first difference)	1	−9.298	0.000

The CIPS test accommodate both heterogeneity and cross-sectional dependency in the testing procedure. Δ denote change which refers to first difference in the time series terminology. The test results reported are without trend the test equation.

Table A4. Panel cointegration test

Test	Stats.	Panel	Group
	V	−2.811	.
	Rho	2.277	4.36
	T	−7.085	−9
	Ad	6.769	8.05

All test statistics are distributed N (0, 1), under a null of no cointegration, and diverge to negative infinity. It means any of the test value above 2 in absolute terms imply rejection of the null hypothesis.

Pesaran MH. 2007. A simple panel unit root test in the presence of cross section dependence. Journal of Applied Econometrics. 22(2):265–312. doi:10.1002/jae.951.

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