Advancing Sustainable Development Trough Green Energy: Triple Bottom Line Analysis of 24 European Countries

Abstract

This study examines the influence of renewable energy sources (RES) and energy-efficient consumption on sustainable development through the Triple Bottom Line (TBL) framework. Using data from 24 European countries over 12 years (2010–2021), correlation analyses and the Generalized Method of Moments (GMM) were used to assess final household energy consumption, RES investments, and the impact of RES consumption on indicators including gross domestic product (GDP), employment rates, energy efficiency and CO2 emissions. The results reveal that RES investments have a positive impact on energy efficiency and GDP growth. However, while RES consumption is positively associated with economic growth, it negatively affects employment rates in medium term, underscoring the challenges of transitioning labour forces from non-renewable to renewable energy sectors. Additionally, final household energy consumption, combined with RES investments and consumption, enhances GDP and energy efficiency but also increases CO2 emissions, emphasizing the need for improved household level energy efficiency measures. Accordingly, the study highlights the critical role of RES and rational energy practices in achieving sustainable development goals. It provides actionable recommendations for policymakers, such as promoting RES adoption, developing workforce retraining programs, implementing targeted household energy initiatives, and reinforcing regulatory frameworks to facilitate cleaner and more efficient energy transitions.