Social, economic, and environmental drivers of renewable energy transition in WESTERN Balkans

The renewable energy transition in the Western Balkans is shaped by a complex interplay of social, economic, and environmental factors. Social dynamics such as increasing public awareness of climate change and a growing demand for cleaner, more sustainable energy play a critical role. Economic considerations, including energy security, long-term cost efficiency, and employment generation, further motivate the shift. Environmental imperatives, such as the need to reduce greenhouse gas emissions and mitigate the negative effects of fossil fuel dependency, also drive the transition. This study investigates the impact of social, economic, and environmental variables on renewable energy transition in six Western Balkan countries, Albania, Kosovo, North Macedonia, Montenegro, Bosnia and Herzegovina, and Serbia over the period 2000–2023. Employing a Random Effects panel data model, the results show that the GINI index has a statistically significant positive effect on renewable energy consumption, while GDP growth and CO ₂ emissions have negative and significant effects. These results indicate that policymakers should implement strong carbon mitigation policies in order to increase renewable energy investments.