The Human Development Relies on Energy. Panel Data Evidence

The purpose of this study is to provide evidence for the role of energy in development, with focus on human development. Aspects regarding the influence of energy on sustainable development and economic development are also highlighted. Several energy indicators are used as independent variables in panel data regression models for several European Union countries with very high and high human development. Their contribution to the changes in Human Development Index (the dependent variable from the equations) is revealed. Both fossil and renewable energy consumptions are included in the analysis in order to declare their capability of attaining human development in the context of consequences on health and environment. In the same time, as energy consumption is accompanied by carbon emissions, we included the CO2 intensity among the explanatory variables. In our trial to determine if energy drives or hinders human development, energy intensity was also used; it resulted that mainly, high levels of energy intensity of a nation poses threats to its human development.