ECONOMIC EFFICIENCY, ENERGY CONSUMPTION AND SUSTAINABLE DEVELOPMENT

This paper analyzes structural indicators of economic efficiency and energy intensity consumption as determinants of sustainable economic development for the selected 33 European countries. The correlation, regression and multivariate factor analyses are applied to test the associations between the selected structural variables of energy intensity consumption, economic efficiency, and the main driving forces behind these developments. Economic efficiency is positively associated with expenditures on research and development (R&D) and a greater technological intensity of exports, while at the same time the economic efficiency of R&D expenditures and technological intensity of exports reduce the energy intensity consumption of the economy. The results suggest that management strategies and policies directed towards R&D expenditures, human capital investments, and technologically intensive export oriented products are improving economic efficiency performance and contributing to energy saving sustainable economic development. The technological intensity of products reduces energy consumption, which is related to restructuring of energy intensive industries into more advanced and energy saving ones with higher value added per unit of product, but with lower energy consumption per unit of product.