Impacts of the European energy transition: Spillover effects and transmission channels
Year: 2025
Type: article
Abstract: We analyze the impacts of the European energy transition on the energy transitions of major industrialized economies (China and U.S.) and on carbon emissions through two potential transmission channels: FDI and immigration. Our sample consists of 16 European economies, the U.S., and China from 2005 to 2019. We use the GVAR to capture spillover effects and transmission channels of energy transition shocks. We find that the European energy transition i) promotes the U.S. energy transition, ii) reduces carbon emissions in the U.S. and Europe, and iii) hinders the Chinese energy transition and carbon emissions. Our results suggest that one-quarter of the European energy transition depends on the external environment. Finally, our study opens windows for globally efficient international cooperation to internalize international externalities and recommends that empirical studies should model carbon emissions and energy transitions as global externalities. • We analyze the impact of the European energy transition on the U.S. and China. • We use FDI and immigration as potential transmission channels. • European energy transition promotes the U.S. energy transition. • And reduces carbon emissions in the U.S. and Europe. • One-quarter of the European energy transition depends on the external environment.
Source: Innovation and Green Development
Authors: Luccas Assis Attílio, Emilson C.D. Silva
Institutions: Universidade Federal de Ouro Preto, University of Auckland
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,900
OpenAlex ID: W4408973305