Impact of Governance Quality and Environmental Degradation on Renewable Energy Development: Evidence from Europe

Esmaeili Korani, Amirmohammad (2026) Impact of Governance Quality and Environmental Degradation on Renewable Energy Development: Evidence from Europe. HUNGARIAN STATISTICAL REVIEW, 9 (1). pp. 56-77. ISSN 2630-9130

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Abstract

Since renewable energy is paramount for achieving environmental sustainability, many countrieswith limited conventional resources, such as those in Europe, have been dealing with various renewable energy development challenges. Thus, this study examines the impact of governance qualityand environmental degradation on renewable energy development among 33 European countries in2022 (the latest available data). In order to analyze the cross-sectional data, principal componentanalysis (PCA), multivariate linear regression (MLR), and partial least squares structural equationmodeling (PLS-SEM) were applied. Based on the results, governance quality and environmentaldegradation have a significant and positive impact on renewable energy development. Meanwhile,the results of the MLR and PLS-SEM estimation models support one another. The implication of thefindings is that European countries should improve political institutions to promote renewable energyand environmental quality. Regarding the catalyst role of environmental degradation in renewableenergy development, governments should raise awareness about the negative impact of relying onfossil fuels and other polluting energy sources.

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