Michaela Ševčíková at the IAEE Conference in Paris with a Contribution on EU27 Electricity Mixes and the Impact of Renewables on Household Electricity Prices: Evidence from a Panel ARDL Model

Michaela Ševčíková attended the International Association for Energy Economics (IAEE) conference held in Paris from 15 to 18 June 2025. Her contribution, co‑authored with Josef Taušer, addressed the topic “EU27 Electricity Mixes and the Impact of Renewables on Household Electricity Prices.”

Our analysis employs a dynamic panel data model with an error correction representation and pooled mean group estimations (panel ARDL), covering the EU27 countries over the period 2012–2023. The study focuses on assessing the impact of the growing share of renewable energy sources in electricity generation on household electricity prices, taking into account differences in relative purchasing power across countries.

According to the ARDL model, the results indicate that renewable energy expansion, EU ETS allowance prices, and higher energy import dependency contribute to increasing household electricity prices in the EU27 in the long run. In contrast, higher GDP per capita tends to mitigate these effects. Less economically advanced countries, with lower purchasing power, appear to be more exposed to relatively high electricity prices (measured in PPS), as they bear a greater cost burden from EU ETS allowance pricing relative to other production inputs and have more limited capacity to absorb structural changes in global energy markets due to lower economic development and efficiency. These findings invite further reflection on how current EU and national policy frameworks may contribute to persistently high electricity prices, raising questions about affordability for households and the broader societal acceptability of the green transition.