Linking Public Finances’ Performance to Renewable-Energy Consumption in Emerging Economies of the European Union

Implementing public policies linked to sustainable development is a global challenge for most countries that focused their efforts on identifying and improving the factors led environment degradation. The current paper analyzes influence of primary indicators finances (public debt budget deficit) renewable-energy consumption (REN), emerging economies within European Union. main objective this research understand implications fiscal measures country thus provide directions stimulating consumption. starts with cross-sectional dependence analysis by using Breusch–Pagan Lagrange multiplier (LM) test followed cointegration relationships among variables applying two appropriate panel-cointegration tests (Pedroni Johansen). methodology based fully modified ordinary-least-squares (FMOLS) method in order long-run relationships, pairwise Granger causality identify direction variables. Results show unilateral influences from deficit analyzed variables, especially consumption, bidirectional relationship between trade openness.