Achieving SDG 7 in the European Union: The Impact of Institutions and Macroeconomic Factors on Energy Conservation


TUTAR H., Streimikiene D.

Sustainable Development, 2026 (SSCI, Scopus) identifier identifier

  • Publication Type: Article / Article
  • Publication Date: 2026
  • Doi Number: 10.1002/sd.71042
  • Journal Name: Sustainable Development
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, ABI/INFORM, Environment Index, Geobase, Greenfile, Index Islamicus, Political Science Complete, Public Affairs Index
  • Keywords: energy conservation, energy poverty, European Union, institutional quality, panel data analysis, sustainable energy
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

Achieving sustainable energy goals (SDG 7) in the European Union requires a deep understanding of the factors driving energy management and conservation. This study investigates the macroeconomic, institutional, and policy drivers of energy management and conservation outcomes across the 27 EU member states from 2014 to 2023. Using multilevel two-way fixed-effects models on a panel dataset, we analyze primary energy consumption, final energy consumption, and energy productivity as complementary indicators of energy conservation and energy management. Panel results show that higher energy prices are key drivers of improved energy productivity and conservation, supporting the effectiveness of price-based instruments. Furthermore, cross-sectional analysis indicates that stronger institutional quality is positively associated with these outcomes, highlighting the relevance of robust governance. Moderation results relying on the 2023 cross-section should be interpreted cautiously, as they cannot support causal inference or persistence over time. Coherent policy mixes significantly enhance energy management, particularly in the industry and services sectors; notably, the policy mix acts as a suppressor rather than a mediator in these relationships. Our findings underscore that a successful and just energy transition, aligned with the Sustainable Development Goals, necessitates an integrated strategy that combines effective policies, strong institutions, and targeted measures to address distributional impacts.