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Determinants of Bioenergy Consumption in the European Continental Countries: Evidence from GMM Estimation

Mohd Alsaleh and Abdul Samad Abdul-Rahim

Pertanika Journal of Social Science and Humanities, Volume 29, Issue 3, September 2021

DOI: https://doi.org/10.47836/pjssh.29.3.01

Keywords: Bioenergy consumption, bioenergy price, capital input, gross domestic product, investment

Published on: 27 September 2021

This study contributes to the existing literature by examining bioenergy consumption and related factors in continental European countries (ECC). This study extends the current research through its focus on the ECC, which mainly consists of nationwide studies. This study analyses the determinants of bioenergy consumption in the ECC from 2005-2013, estimates its economic variables and evaluates the influence of each variable on bioenergy consumption and related significance level. A generalised method of moments estimator (GMM) was designed for ECC. The estimated models show that bioenergy capital input (CI) positively impacts bioenergy consumption. The most influential factor on use was the price of bioenergy (PR) followed by investment (INV), then gross domestic product (GDP). These results should be considered and used as a tool to develop legislation and policies that could benefit the bioenergy sector in ECC. The evidence shows that CI, INV, and PR have been the primary keys in improving bioenergy consumption in recent years in ECC countries. Thus, they have advanced the efficiency of bioenergy consumption.

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