Is renewable energy effective in promoting growth?

► We empirically test the distinct effects of decomposing energy by source on growth. ► We focus on 24 European Countries (1990-1907) by applying a panel data approach. ► Fossil fuels lead to dissimilar effects on growth. Coal hampers and oil stimulates it. ► Economic growth does not appear to improve with the paradigm change to renewable. ► High costs of promotion of renewables are being placed excessively upon the economy.