The impact of renewable and non-renewable energy consumption on economic growth: the case of Greece

This study empirically investigates the relationship between renewable and non-renewable energy consumption and economic growth in Greece, using annual data from 1990 to 2016. The results reveal that there is a significant positive long-run effect of both, renewable and non-renewable energy consumption, on economic growth. In the short run, the results are in the same direction. The overall findings imply that renewable and non-renewable energy consumption significantly stimulates economic growth in Greece. Taken into account that renewable energy sources reduce carbon emissions and protect the environment, the expansion of renewable energy consumption with a strategic plan is required. The challenge for policymakers in Greece is to substitute conventional energy fuels with others that produce less pollution and to raise renewable energy sources by keeping a sustainable and long-term growth path. Energy policy should be combined with the implementation of coherent, consistent and sequential renewable energy-enhancing structural reforms.