The Economic Instruments for the Development of the Renewable Energy Sector in the EU and Ukraine

Abstract

The research reveals the theoretical and practical aspects of the green energy sector. The article compares the level of development of the green energy sector in the European Union and Ukraine. Different indicators, including the share of energy from renewable sources in Ukraine, the interaction between the level of GDP per capita and the share of renewable energy in the EU and Ukraine, and the structure of the renewable energy resources of Ukraine and the EU are taken into account. The article discussed the role of financial and non-financial tools for the development of the green energy sector in the EU countries. The research states that the countries can be divided into three groups, where group A involves countries with a highly developed green energy sector, group B – member-states with progress in the transition to alternative sources of energy, and group C – countries with weak or no progress in the development of renewable energy sector. The research explains the impact of economic prosperity in developed countries on the renewable energy sector. It investigates that there is a very small positive correlation between the independent variable and the dependent variable. In general, it demonstrates that there is no correlation between the economic condition of very developed countries and the level of their green energy efficiency. The article suggests policy-making changes for the stable development of green energy in both the EU and Ukraine. Revision of existing government's medium and long term plans and adapting them to current circumstances, the gradual reduction of subsidies and reform of energy pricing, the regulatory focus on energy efficiency, the attraction of private investments through the use of domestic and donor investments are determined as important actions for stable development of green energy sector.