Is energy poverty of Eastern European countries a threat or opportunity in the European Union's fight against climate change?

Abstract

Energy poverty is a critical global issue that affects millions of people worldwide. The lack of access to reliable and affordable energy services has significant economic and social impacts, including limited opportunities for education, personal development, and economic growth. This paper examines the relationship between energy poverty and economic development in selected countries using the panel quantile methodology. The findings emphasize the importance of addressing energy poverty in order to foster economic growth in the selected country group. In addition, CO₂ emissions have a positive effect on economic growth, but policies to reduce fossil fuel consumption can both boost economic growth and mitigate negative environmental impacts. Inflation has a negative effect on economic growth, so policymakers should prioritize measures to control it. Employment has a positive effect on economic growth, so job creation policies should be promoted. The study found that improving access to clean energy can increase economic growth and improve the well-being of citizens in Eastern European countries. Therefore, efforts to reduce energy poverty should be a priority to promote economic development and improve the quality of life.

Keywords: Eastern European countries; Economic development; Energy poverty; PQR analysis.