Do natural resources impede renewable energy production in the EU? A mixed-methods analysis

Since signing the Amsterdam Treaty in 1997, the European Union (EU) has been working on increasing its renewable energy supply. However, the progress has been uneven across member states. A vibrant literature advances several explanations for this variation, but pays insufficient attention to a critical structural factor varying levels of natural resource wealth across the EU and provides an incomplete account by focusing on consumption indicators. Reconciling divergent views in the literature in a single framework, we hold that while overall natural resource abundance can be conducive to renewable energy production within a country, specific natural resources, such as petroleum, are likely to be harmful. These hypotheses find empirical support in a mixed-methods study that combines a fixed-effects statistical analysis of comprehensive panel data between 1997 and 2015 with a comparative qualitative case study of the Netherlands and Belgium. The findings suggest that to achieve the ambitious goals on renewable energy deployment, the EU needs additional policies that explicitly tackle pernicious effects of specific natural resources, including rent-capturing by politicians, rent seeking by corporate vested interests, and lack of economic incentives to diversify.