Davide Bazzana, Nicola Comincioli, Sergio Vergalli

Energy Consumption and Economic Growth: The Role of Policies

  • Abstract

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Keywords: Energy Consumption, Economic Growth, Incentive Policies

The link between energy consumption and economic growth is a widely debated topic in the scientific literature. Studies have focused on the definition of energy to be taken into account, the best empirical methodology to be adopted in analyses, and the specific geographic differences that modify approaches and results. The role of renewable sources and incentive policies, aimed at reducing the use of fossil fuels, has become increasingly important over the past decade. This contribution has two objectives: i) to provide a state-of-the-art review of the literature on the relationship between energy consumption and economic growth in light of changes in the global energy mix; ii) to describe policy instruments (carbon tax, subsidies, ETS) for driving the energy transition by reducing the use of fossil energy sources and increasing the share of renewables. The conclusion focuses on the causal link between energy mix, policy and economic growth

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