Energy consumption by energy type and exports of goods in Greece : a comparative analysis in relation to the euro area

The rapid expansion of non-oil goods exports in Greece during the last decade contributed to raising net exports, despite the severe economic crisis the country was undergoing. Nevertheless, the EU’s overall energy consumption exhibited a downward trend that was even stronger in Greece. This study examines the dynamic relationship between exports of non-energy goods and final consumption of energy in Greece and the euro area (EA) over the last two decades, considering five separate energy types. Single equation and panel estimations are employed, making it possible to compare the results of the two approaches. It is shown that exports of goods in Greece are dependent on final consumption of oil, electricity and renewable energy (RE), while the final consumption of natural gas, oil and electricity has an effect on goods exports in the EA. The largest effect on exports of goods in Greece comes from the consumption of electricity, part of which has been produced from RE in recent years. Greece’s goods exports are found to have a higher dependence on RE consumption than the EA’s, which is related to the recent higher growth of RE consumption. Statistically significant causal relationships are found between goods exports and the traditional energy types (i.e. oil and natural gas) both in Greece and the EA. The prospects for accelerating the energy transition are not as favourable, following the emergence of the energy crisis. This negative outlook may have consequences on Greece’s improved openness and on the rising trajectory of goods exports