Abstract

Green growth aims to achieve economic growth while preventing environmental degradation, biodiversity loss, and unsustainable use of natural resources. It decouples the effects of economic activities from environmental activities, thus seeking to make investing in the environment an engine of economic growth. Energy is one of the most critical inputs in all economic activities. It is an essential driver of economic development, and energy supply and efficiency of its use are crucial for green growth. Conventional sources of energy cause an increase in both greenhouse gas (GHG) emissions and regional air pollution. They also influence water quality and land use. There is a call for increased use of renewable energy sources to tackle climate change and energy security problems. Thus, countries worldwide should progress towards more energy-efficient technologies and provide consumers with more energy-efficient goods and services. This paper aims to assess the performance of EU countries in energy productivity using a synthetic measure (based on Hellwig’s taxonomic measure of development) of the following indicators: energy productivity, energy intensity, total primary energy supply, renewable energy supply, and renewable electricity. The results show that although there has been progress in energy productivity in EU countries on average, there are still some disparities. Although the EU has adopted a common policy towards boosting energy efficiency by implementing the European Green Deal, some countries are still lagging behind. On average, western EU economies have a higher level of energy productivity; however, the rate of increase is higher in central and eastern EU countries, which may indicate a convergence process in EU economies.