Examining the Relationship between the Economy and Energy in the European Union Using Multivariate Statistical Methods

Viktória Erőss, Imre Dobos, Tamás Pálvölgyi
Statistika, 105(2): 151–164
https://doi.org/10.54694/stat.2024.46

Abstract
Economic growth, which is the focus of nations' central objectives, is causing significant environmental costs and damage (Chou et al., 2023). Fossil energy use contributes to economic growth but is also a major source of carbon emissions and accelerating rates of climate change, requiring governments to balance spending on economic growth with sustainable energy management (Bhuiyan et al., 2022).
This research aims to examine and evaluate the links between economic performance and energy management. This will be achieved through a multivariate statistical analysis of relevant EU data (GDP, energy production and consumption, energy exports and imports, GHG emissions) for 27 Member States in 2022. The results of the correlation analysis will partly provide insights into the relationships between the variables, while the results of the principal component analysis will allow for identification of background variables. The cluster analysis shows a high degree of homogeneity among members, but several outliers can be identified.

Keywords
Economic growth, sustainable energy, energy use, renewable energy, GHG emissions