Impacts of the European energy transition: Spillover effects and transmission channels

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...

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Main Authors: Luccas Assis Attílio, Emilson C.D. Silva
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Innovation and Green Development
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Online Access:http://www.sciencedirect.com/science/article/pii/S294975312500027X
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author Luccas Assis Attílio
Emilson C.D. Silva
author_facet Luccas Assis Attílio
Emilson C.D. Silva
author_sort Luccas Assis Attílio
collection DOAJ
description 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.
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series Innovation and Green Development
spelling doaj-art-b99bb8bd72ab4f93b3769497f805305e2025-08-20T03:20:12ZengElsevierInnovation and Green Development2949-75312025-06-014310023010.1016/j.igd.2025.100230Impacts of the European energy transition: Spillover effects and transmission channelsLuccas Assis Attílio0Emilson C.D. Silva1Department of Economics, Federal University of Ouro Preto, Brazil; Corresponding author.Energy Centre and Department of Economics, University of Auckland, New ZealandWe 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.http://www.sciencedirect.com/science/article/pii/S294975312500027XQ42Q43Q28F15
spellingShingle Luccas Assis Attílio
Emilson C.D. Silva
Impacts of the European energy transition: Spillover effects and transmission channels
Innovation and Green Development
Q42
Q43
Q28
F15
title Impacts of the European energy transition: Spillover effects and transmission channels
title_full Impacts of the European energy transition: Spillover effects and transmission channels
title_fullStr Impacts of the European energy transition: Spillover effects and transmission channels
title_full_unstemmed Impacts of the European energy transition: Spillover effects and transmission channels
title_short Impacts of the European energy transition: Spillover effects and transmission channels
title_sort impacts of the european energy transition spillover effects and transmission channels
topic Q42
Q43
Q28
F15
url http://www.sciencedirect.com/science/article/pii/S294975312500027X
work_keys_str_mv AT luccasassisattilio impactsoftheeuropeanenergytransitionspillovereffectsandtransmissionchannels
AT emilsoncdsilva impactsoftheeuropeanenergytransitionspillovereffectsandtransmissionchannels