Environment, Development and Sustainability, 2025 (SCI-Expanded)
This study investigates the spatial convergence of renewable energy consumption (REC) across European Union (EU) member countries from 1995 to 2021, with a particular focus on the impact of EU environmental policies. The study uses advanced spatial econometric models (e.g., SAR, SEM, and SDM) to fill an important gap in the existing literature, as traditional convergence tests often overlook spatial dependencies and policy spillover effects. Our results provide robust evidence of spatial β-convergence in REC, indicating that countries with lower initial renewable energy use tend to catch up with their more advanced counterparts. This is primarily driven by domestic environmental taxes and CO₂ emissions patterns. While environmental taxes increase domestic convergence, their impact does not extend across borders, highlighting the need for enhanced policy harmonization within the EU. Our results further indicate the complex role of socioeconomic factors, such as GDP and the Human Development Index, which indirectly impact REC through spatial interactions. These results underline the significance of coordinated regional policies and cross-border cooperation in promoting equitable and efficient energy transitions. This study integrates spatial econometric rigor with a comprehensive policy analysis framework to provide novel, empirical insights into the dynamics of renewable energy adoption. It also provides practical recommendations for enhancing regional collaboration and implementing policies that will help the EU achieve its ambitious climate goals.