Green hydrogen impact on economic growth: A cross-sectional analysis of 29 European countries

Abstract

This study investigates the effect of hydrogen-based renewable energies on economic growth in 29 European countries, utilizing the Cob-Douglas production function and employing the RWLS estimation method. The findings reveal a substantial positive association between total hydrogen energy consumption and economic growth, with a 1 % increase corresponding to a 0.168667 % rise in GDP. Furthermore, the study differentiates the impacts of green and non-green hydrogen consumption, highlighting the stronger effect of green hydrogen on economic growth. Our study's policy implications advocate for a comprehensive and strategic approach to harnessing the economic potential of hydrogen-based renewable energies. By aligning policies with the findings of our research, governments and stakeholders can pave the way for a more sustainable and economically vibrant future, and should promote green hydrogen initiatives for enhanced energy security, environmental sustainability, and economic development.