Inclusive Growth, Energy Poverty and Digital and Social Development: Cross-Country Analysis of the European Union

Abstract

The present study delves into a critical concern on the relationship between energy poverty, digital and social development and inclusive growth. The main research hypothesis assumes a positive relationship between these areas, although differences between countries are inevitable. Therefore, the following research questions were asked: Is the impact of the level of energy poverty on inclusive growth the same in different EU countries? How does the use of renewable energy sources in individual countries affect energy poverty and thus inclusive growth? What is the link between energy poverty, digital and social development and inclusive growth in the countries studied. This study uses a critical analysis of the literature and methods of descriptive and mathematical–statistical tools/model. The main conclusions and findings of the analysis reveal that the link between energy poverty, use of renewable energy resources, digital and social development and inclusive growth varies across EU countries. The results of our analyses may be useful, for example, for government decision makers in terms of actions aimed at eliminating energy poverty through the country’s use of sustainable energy sources as well as designing and implementing actions aimed at increasing digital and social development, which will then contribute to inclusive growth.

1. Introduction

The topics addressed regarding fuel poverty and digital and social development are playing an increasingly important role in terms of social inclusion. The aspects indicated, expressed in terms of indicators, show the relationship between the areas, including allowing differences between countries to be identified. An interesting research problem is to find links between the extent of energy poverty, digital and social development and social inclusion. These phenomena become increasingly important in the context of economic change and transformation, including the creation of sustainable economies in which social inclusion, the absence of fuel poverty and high levels of digitalisation are expected to ensure the well-being and better living standards of the population. An important aspect is inclusiveness, meaning offering equal economic and social opportunities to all sections of society, regardless of wealth and social status [1].

In Europe, the energy transition needed is extremely difficult to achieve given the extent to which renewable energy is being used as well as the increasing problem of energy poverty in the countries of the European Union. It is worth pointing out that, unfortunately, the phenomenon of energy poverty affects 50 million EU inhabitants [2]. This is why the European Union has made tackling energy poverty a priority [3]. Renewable energy use in the EU in 2022 was 23% [4]. This means that measures must be taken to increase the use of renewable energy and, at the same time, reduce energy poverty. In addition, digitalisation and the use of ICT (information and communications technology) are contributing to an increase in the level of energy use. At the same time, transformations are leading to changes towards, among other things, a green economy, which is based on digitalisation [5]. It is therefore necessary to combine all these social and economic phenomena and look for connections and correlations that can contribute to improving not only a country in the rankings, but to meeting the demands of transformation and creating sustainable economies.

There is a lot of talk about transformation, support for societies and change through ICT solutions. High levels of indicators related to digitalisation support the development of societies while maintaining a development direction related to support for the green economy. These activities are linked to the increase in energy demand and the concomitant risk of energy poverty.

The reduction of inequalities and poverty is supported by the economic prosperity of the country [6] and its level of development at various levels. However, development alone does not guarantee the reduction of social, environmental and economic inequalities [7]. Measures should therefore be taken that simultaneously support the fight against energy poverty and result in an increase in indicators related to the use of renewable energy (leading to fulfilment of the green economy), social inclusion and digitalisation.

The research in the following article addresses the critical question of the relationship between energy poverty, digital and social development and inclusive growth. The main research hypothesis assumes a positive relationship between these areas, although differences between countries are inevitable. Therefore, the following research questions were asked: Is a given indicator a stimulant or a destimulant of inclusive growth? Is the impact of energy poverty levels on inclusive growth the same across EU countries? How does the use of renewable energy sources in different countries affect energy poverty and subsequently inclusive growth? What is the relationship between energy poverty, digital and social development and inclusive growth in the countries studied. The originality and novelty of the results is related to the scope of the study, as well as the indication of the links between the mentioned indicators and social inclusion and its scope. The scientific literature is rich in various types of analyses and comparisons of indicators with the development directions of economies, but an approach combining such different elements: inclusive growth, social exclusion and digital and society development has not been presented so far.

The study used a critical analysis of the literature and descriptive and mathematical/statistical tools/models. The first step in the undertaken considerations was a critical analysis of the literature. This enabled the identification of the research gap, and then the research problem. Based on this, the authors’ goal is to attempt to answer the following research questions:

Is a given indicator a stimulant or a destimulant of inclusive growth?

(QR1) What is the level of energy poverty in EU countries? And is the impact of level of energy poverty on inclusive growth the same in different EU countries?

(QR2) What is the level of use renewable energy sources in EU countries? And how does the use of renewable energy sources in individual countries affect energy poverty and then inclusive growth?

(QR3) What is the level of digital and social development in EU countries? What is the link between energy poverty, digital and social development and inclusive growth in the countries studied.

The article is structured as follows. Part two analyses the literature related to the main issues raised in the paper, part three indicates the research methodology, part four is the empirical findings and statistical analysis—descriptive and mathematical, part five is limitations and discussion and the article concludes with a summary and further research directions.

2. Literature Background

Indicator analyses of the relationships, correlations and links between the indicated elements related to the topic of consideration require an introduction to the topic indicating a brief analysis of the concepts, the measurement system and the relationships between the criteria in order to justify the methods and scope of the empirical study and to indicate the field for scientific discourse. This section concludes with a collective analysis of selected indicators that will form the basis of the analyses in the empirical section.

2.1. Inclusive Growth

Despite the many obstacles, barriers and challenges facing today’s global economies, it is assumed that an increasingly globalised world will experience significant economic growth over the next few years [8]. For this to happen and for the assumptions to become a reality, economies need to overcome the problems they face. Among the most important of these are environmental degradation, social inclusion, digital and energy inclusion and taking measures to foster inclusive development.

Research and publications on inclusive growth have been appearing for almost two decades now. The literature most often indicates that it is growth that enables all segments of the population to be active, meaning that regardless of their social, demographic, ethnic, religious or gender group, as well as regardless of the economic sector, all people contribute to economic growth while benefiting from it [9,10]. This means that everyone, regardless of status, participates in the growth and economic development of the country. Analysing the literature on the subject, it is clear that the concept of inclusive growth is also associated with inclusive development [11], which presupposes the inclusion of all persons, regardless of social status, in the development of and participation in social, political and economic processes aimed at improving the well-being of societies, including social inclusion and environmental sustainability, thereby strengthening a country’s position in the international arena. This means that every person or group in society has an equal and equal stake in the growth process. He or she contributes to the assumed development, regardless of his or her circumstances [12]. Inclusion means involving every segment of society that supports growth, while also benefiting fairly and equitably from it [13,14,15]. Inclusive growth is influenced by processes in all spheres of the economy, with a particular focus on processes in agriculture, industry and energy [16].

Inclusive growth requires a range of economic factors to be taken into account so that it is equitable. The absence of such inclusion and growth considered in this way leads to an unequal distribution of wealth and income, with benefits and gains redistributed to only a small proportion of society. Such an approach exacerbates social disparities and stratification, and can lead to social unrest and instability [14,17]. It should be made clear that inclusive growth applies to every country and every social unit. In poorer countries, unfortunately, there is often no awareness or knowledge of it. It is clearly linked to digital inclusion, because it is through digital inclusion (e.g., through Internet access) that the awareness of the inhabitants of less developed regions about environmental degradation (which is also an element of inclusive growth and development) can be raised [18]. Sustainable development is inclusive, but society needs to be aware of it.

Inclusive growth is linked to several concepts. It is often referred to the concept of wellbeing, which can be supported by technologies that enable sustainable economic development [19]. Another element of support is the sharing economy [8]. In this respect, inclusive development is understood as an awareness of social progress that develops through the relationships that are built, there is an awareness of the need to reduce waste, through inclusion, and technological revolutions support these processes. A large role is played here by media and social networks, which are becoming key to sharing and making explicit what kind of global village the world is now [8]. The continual increase in participation in the various processes by all members of society provides a sense of collective ownership, and at the same time responsibility, for achieving economic growth. Also part of supporting such growth is the access economy, which involves a horizontal process of sharing goods and services, through the use of direct trade [20] or the concept of sharing as a concern for inclusive development based on a shared public ethic for reducing disadvantages such as poverty reduction or unemployment [21]. What is important here is not only social inclusion, but also the human contribution to receiving and sharing nature’s resources in a responsible way. This means reducing waste, over-consumption or over-production, which have not only social but also environmental consequences [22]. As can be seen from the analysis of the literature, inclusive growth is linked to a variety of concepts, as well as dependent on a number of factors and actions taken to achieve higher levels of sustainable and inclusive growth. However, it requires action in a number of fields, taking into account economic development patterns, and integrating into inclusive growth the different elements of technological, digital, energy development (including the elimination of exclusion) and implementing economic activities in line with sustainable development goals. It can therefore be pointed out that inclusive growth emphasises the reduction of disparities and the achievement of equal opportunities in the economic development process.

2.2. Energy Poverty

Energy poverty does not only affect less developed or poorer countries. The fight against energy poverty is one of the priorities of the European Union. Energy poverty is defined as the lack of access to energy, the inability of households to meet their energy needs, the inability to pay for energy services, as well as having to bear a disproportionate share of total family income to pay energy bills [23]. Defining fuel poverty is not straightforward. It is a multidimensional concept that involves the lack of a clear measurement system the existence of many indicators in this field, within which there are many variables that affect the extent of poverty [24]. These include affordability, energy prices themselves, energy efficiency of residential buildings [25]. Energy poverty results from the correlation of low incomes in societies and a high proportion of disposable expenditure to meet energy needs. Added to this is the problem of infrastructure, including buildings that are not energy efficient [26]. Elements that count as energy poverty are also the amount of energy needed for lighting or space heating, the correlation of household income levels with energy expenditure, including income levels below which no change in energy consumption and/or energy costs is expected, indicating that the lowest possible level of energy consumption is being achieved.

The main determinants of energy consumption according to various studies include: heating method, household demographic factors, climatic factors including climate change, household economic situation, energy prices and also ethnic diversity [27,28,29,30,31].

The problem in Europe is twofold, households often cannot either reheat or cool their homes to an appropriate temperature. Reducing energy costs means having to save money for other essential needs that are related to energy use and this leads to discomfort, or having to save money and not meeting other needs because of energy costs. Energy poverty is not only about high energy costs, but also about energy quality and the type of energy consumed by households.

2.3. Digital and Social Economy

Nowadays, there is a continuous development of technology and, consequently, of the digitalisation of society. In fact, it is already difficult to imagine public services that are not supported by applications, and access to technology, is one of the elements supporting the economic, social and economic development of societies. Economic growth models that are based on sustainable development around the world are becoming more and more inextricably linked to digital technology [32]. The digital economy is becoming an integral part of and impetus for sustainable development [33]. Steady and continuous growth is a priority for economies worldwide, and this is supported by digitalisation and concomitant social development. Assessing the digital economy is not simple and easy.

The digital economy permeates all spheres of life, influencing virtually every new management concept. Its impact on sustainable development, including environmental protection, or the social aspect of the [34]. The digital economy is recognised as a modern instrument of economic development [35].

The scope of the digital economy can be considered in narrow and broad terms. The narrow view refers to analyses of the use of ICT in different sectors and at different levels (services, equipment), while the broad view refers to the use of ICT in traditional sectors that have been integrated with digital technology. The digital economy is based on the widespread use and application of digital information and knowledge in economic activities. These are considered key factors of production and the networks of information obtained through the latest technologies are an extremely important space of activity. ICT being part of the digital economy should be considered as a variable with both direct and indirect effects on the development of the whole economy. It can be assumed that ICT stimulates economic growth in the long term [36]. The digital economy is becoming increasingly important for structural economic modernisation and coordinated development. This can happen thanks to modern technologies and innovations [32].

In terms of the development of social economy issues, high hopes are placed on linking and supporting it through the use of the digital economy and digital solutions. The two issues are therefore interlinked. The basis of social economy models is the paradigm of the individual and their autonomy. The social economy activities supported in this regard are intended to lead to inclusive growth based on the equality and dignity of those who participate in these processes [37]. This area can be supported by actions based on technology or knowledge, i.e., to a large extent the digital economy. Collective action can lead to a stronger sector by making it more dynamic, improving the working conditions of employees, or involving employees in decision-making processes [38]. Social inclusion and social economy support can be said to be unequivocally linked to digital support. Both elements should therefore be considered as coexisting and mutually supportive elements.

It is also worth mentioning that energy vulnerability is becoming increasingly important in light of global economic, social and political conflicts. The digital economy has the potential to become a key tool in addressing current issues, including being a concrete support in addressing social and energy inclusion [39,40]. This is interesting in light of the research, as it can be concluded that the development of the digital economy contributes to the possibility of reducing energy poverty [41,42,43].

2.4. Sustainable Development Goals

The Sustainable Development Goals (SDGs) contained in the UN’s Agenda 2030 refer explicitly to economic, social and environmental development. The 17 goals contain information and actions that should be taken to guarantee human well-being on a global scale [44]. With regard to the implementation of the goals, it should be pointed out that they do not exist independently of each other. Although they relate to different areas and spheres of life and functioning of people on earth, they are correlated and interact through inextricable links. Actions taken that may support one goal may simultaneously affect the progress of other goals or objectives. This linking can take place through synergies or trade-offs. However, linkages can virtually always be found, although they may differ between regions, and the extent of linkages may depend on interregional interactions [45]. The 169 specific objectives are linked both thematically and through the use of similar wording [46]. In addition, in terms of achieving the objectives, the policy should be made more coherent [47] to avoid or minimise trade-offs. This can be done with knowledge of the integration between the different objectives located at different levels of integration. The actions and interactions undertaken provide an opportunity to identify the exploitation of synergies and reduce trade-offs between objectives [48,49]. Knowledge of specific targets and the use of an appropriate measurement system for meeting individual targets allows comparison and correlation of targets with other measures that are compatible with, or supportive of, the overall sustainability goals.

2.5. Renewable Energy

The use of renewable energy is already a necessity. It is an indisputable fact that the level of environmental pollution, as well as the exhaustibility of non-renewable deposits, necessitates the search for alternative energy sources. At the same time, the volume of renewable energy consumption is correlated with economic growth. At the same time, the new energy sources, which are considered modern, require the use of modern infrastructure often based on digital resources that manage the use of energy, allow its efficient use and economic viability. This means that the use of renewable energy is linked and can have an impact on inclusive growth. Green energy plays a very important role in achieving sustainable development goals. At the same time, the use of green energy has been proven to have a positive impact on economic growth [50]. Unfortunately, most countries are not yet using renewable energy at a satisfactory level. The use of renewable energy is relatively low and the cost of switching to this power supply is still quite high. To achieve a higher level, it is necessary to support and promote the positive impact of renewable energy on the economy, through the modernisation of infrastructure and, consequently, a simultaneous impact on other spheres of the economy, including influencing inclusive growth [51].

It is important to remember that resources are the material basis for economic growth, and green growth depends on the rational use of resources [52]. It is also clear that the impact of renewable energy consumption on economic growth depends on the specific characteristics and situation of the region. Many scientific studies show a positive relationship between the use of renewable energy and economic growth [53].

The use of renewable energy is also important for another reason, which is related to current environmental pollution and the impact of this pollution on society. At the same time, the measures taken support inclusivity. The environmental part of inclusiveness includes, for example, the degree of renewable energy consumption [54], implementation of innovations related to new technologies, which include the use of energy generated from renewable sources [55]. Energy consumption, including CO₂ emissions, or the structure of the resource that is used to generate primary energy is also of great importance [56]. Other harmful substances, PM_2.5, are also responsible for the health problems of the population, as well as increased costs of care due to the need for treatment and prevention of diseases caused by atmospheric emissions from industrial activities and emissions from transport [54]. Therefore, when considering the impact and scope of renewable energy on inclusive growth, it is important to use the measurement of sustainable energy use to get a holistic picture of growth, but also the elements that need further support, or to identify those that have the greatest impact on slower growth.

Summarizing the theoretical considerations, it should be pointed out that all the topics and issues raised are beginning to play an increasingly important role in modern economies. At the same time, all elements are interrelated and not only relevant to economic and social development, but are correlated with the requirements of sustainable development. The theme of inclusive development and such growth is linked to social development and the inclusion of all citizens in the scope of wealth distribution and participation in social and economic life. And this is at the same time linked to digital, energy development and inclusion while supporting sustainable development.

3. Material and Methods

The considerations in this paper were carried out according to the following steps (Figure 1):

In order to answer these questions, dependent and independent variables were identified and selected. For this purpose, publicly available official databases were used, such as Eurostat [57], the database of the European Commission [58], data of the European Environment Agency [59], data of the United Nations Trade and Development [60], data of the World Bank [61].

Then, using available data, a comparison was made between European Union countries in the years 2017–2022, taking into account selected variables characterizing energy poverty, RES, digital and social development and inclusive growth. Due to data availability, Malta was excluded from consideration. The time period of 2017–2022 was adopted for the study due to the availability of the DESI indicator. It should also be noted that such a period (6 years) already allows for the observation of potential changes over time and is considered sufficient at the statistical level.

Then, a correlation analysis of selected variables was carried out. Moreover, in order to answer the question about the relationship between the explained variable (inclusive growth) and the explanatory variables, multiple regression models were used in every EU country.

Y = β0j + β1j·X1j + β2j·X2j + ... + βij·Xij,

(1)

where y—refers to inclusive growth, x1, x2, explanatory variable representing energy poverty, RES, digital and society development,

• Y—inclusive growth,
• X1—the share of the energy from renewable sources,
• X2—(energy poverty) arrears on utility bills (% of population),
• X3—(energy poverty) expenditure of households on energy (housing, water, electricity, gas, fuels),
• X4—(energy poverty) inability to keep home adequately warm (% od population),
• X5—social and digital development DESI (Digital Economy and Society Index).

4. Data Analysis and Modeling

In order to examine the impact of independent variables on inclusive growth, it would be best to use the IGI index (Includive Growht Index) developed by UNCTAD, which measures a country’s economic well-being and inclusivity across four categories (

Table 1. IGI dimensions according to UNCTAD.

Pilar 1. Economy	GDP National income Power consumption Employment Trade
Pillar 2. Living condition	Social and health conditions Logistics and finance
Pillar 3. Equality	Labour participation Income inequality School enrolment Political participation Gender socio-reproduction
Pillar 4. Environment	Natural capital protection (water, land, gas emissions) Energy intensity

Source: own preparation based on [60].

): economy, living conditions, equality, and the environment [62]. The maximum value of this indicator is 100.

This index covers only 3 years (2019, 2020, 2021). Therefore, this indicator will be presented only for illustration purposes in the form of a figure (for a wider range of EU countries comparison) and will not be taken into statistical calculations.

Analysing the data on inclusive growth measured by the IGI index, one can notice significant differences between the countries of the so-called old and new EU. Only Greece, Italy, Spain, i.e., the countries that formed the European Union before the accession of new members in 2004, are characterized by a low inclusiveness index (often lower than the countries of the new EU).

The digital and society development of EU countries can be measured using The Digital Economy and Society Index (DESI). This indicator has been published by since 2017. It takes into account 4 areas: human capital, connectivity, integration of digital technology and digital public services (

Table 2. DESI dimensions.

Pilar 1. Human capital	Internet user skills Advanced skills and development
Pillar 2. Connectivity	Fixed broadband take-up Fixed broadband coverage Mobile broadband Broadband prices
Pillar 3. Integration of digital technology	Digital intensity Digital technologies for businesses e-Commerce
Pillar 4. Digital public services	e-Government

Source: own preparation based on [58].

).

Development in the component areas of this indicator translates into social and digital development and thus, as noted in the theoretical part, can promote the inclusiveness of the economy.

Comparing the data from Figure 2 and Figure 3, certain similarities can be seen. Once again countries of the old EU are characterized by higher social and digital development, as well as a higher level of inclusiveness. Moreover, countries with economies with low DESI indexes usually also have low IGI indexes.

One of the important factors when considering issues related to both alleviating poverty, including energy poverty, and supporting the inclusiveness of the economy is the use of renewable energy. The share of renewable energy in gross energy consumption measures the degree of use of renewable energy—that is, the degree to which renewable fuels have replaced fossil and/or nuclear fuels. The share of renewable energy in gross final energy consumption is presented in Figure 4.

In the period of 2017–2022, an increase in the share of renewable energy in the gross energy consumption can be observed in almost every EU country (a decrease only in Romania). The largest increase in the share of RES occurred in small Luxembourg (over 100%), the Netherlands (also over 100% increase), but also in Belgium, Cyprus, Poland, and Slovakia. The largest share of RES is observed in Sweden, Finland and Denmark. These countries are characterized by high DESI and IGI indices.

As noted in the theoretical part of the discussion, energy poverty can manifest itself in many aspects. Therefore, in order to illustrate the phenomenon of energy poverty in the EU countries in the period under study, several variables indicating this negative phenomenon will be presented.

One of the manifestations of energy poverty is arrears on utility bills. The existence of arrears and debts is contrary to the idea of idea inclusive growth. Comparing the data on inclusive growth, social and digital development and arrears on utility bills (Figure 2, Figure 3, Figure 4 and Figure 5) we can see some link.

Generally, in the economies of the so-called new Union—in countries with a lower level of inclusiveness and socio-digital development, we can observe the occurrence of greater problems related to energy poverty measured by the level of arrears on utility bills (Greece, Bulgaria, Romania). On the other hand, in the so-called old EU countries with a higher level of inclusiveness, this problem occurs to a lesser extent. Moreover, the decline in the share of households having problems with repaying this type of liabilities in almost every EU country in the analysed period should be considered a positive phenomenon.

Another factor influencing energy poverty is the share of household expenditure on energy (water, electricity and others) in total expenditure. The higher this share, the more vulnerable consumers may be to poverty, which is not conducive to socio-economic inclusion.

Analysing the data presented in the Figure 6, one can see a certain observation. In the so-called old EU countries (in general) the share of these expenses in total expenses is higher than in the new EU countries. This may be related to greater state aid in this area (in “poorer” new EU countries), but also to lower socio-economic-digital development (less equipped households spend relatively less than wealthier households). However, confirming these theses requires more detailed research in this area.

Another factor that affects the risk of energy poverty is the ability to maintain the appropriate temperature in the house (both in winter and summer). Inability to keep home adequately warm is presented on Figure 7.

Analyzing the 2017–2022 data, it can be seen that—again—usually in the old EU countries, in countries with higher inclusive growth, the problem of maintaining the right temperature at home affects a small percentage of households. In turn, in countries such as Bulgaria, Romania (new EU countries), but also Greece, the percentage of households struggling with this problem is much higher.

In order to more precisely examine the impact of individual independent variables (indicators representing energy poverty, socio-digital development and RES) on the dependent variable (inclusive growth) in individual countries, a regression analysis was carried out, building (if possible) a separate explanatory model for each.

Due to the fact that the IGI index covers too short a period (only 3 years), and in accordance with the literature [63,64] the GDP per person employed was adopted as the explained variable (inclusive growth). It should of course be noted that using GDP per person employed as a measure of inclusive growth has a major limitation. However, using this indicator may allow for assessing the impact of energy poverty, the use of RES and digital and society development on the overall well-being in EU countries. SDG Goal 8 refers (among others) to this indicator: promoting inclusive and sustainable economic growth, employment and decent work for all. Goal 8.1 is to—sustain per capita economic growth in accordance with national circumstances and, in particular (at least 7 per cent gross domestic product growth per annum in the least developed countries) [65].

It can be observed that usually one variable of the variables left after the steps in the backward regression is statistically significant—p value is less than 0.05 (p value is the probability of obtaining test results that are at least as extreme as the result actually observed, assuming the null hypothesis is correct).

To test the significance of structural parameters p-test was used, in which the p-statistic has a Student’s p-test distribution with n-k-1 degrees of freedom.

H0 and alternative hypotheses:

H0: 

bi = 0 (no linear dependence).

H1: 

bi ≠ 0 (there is a linear relationship).

The findings underscored that, across most countries digital and social development and using the energy from renewable sources as well, are statistically significant and have the greatest impact on inclusive growth.

For the parameters in

Table 3. Descriptive statistics, correlation matrix and results of regression analysis for the EU countries.

Austria
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	34.26	1.207	1.000000	0.049917	0.744941	−0.598384	0.193288	−0.826708
bills	2.75	0.497	0.049917	1.000000	−0.103526	0.311300	−0.428128	−0.495560
exp	23.70	1.594	0.744941	−0.103526	1.000000	−0.230393	0.688175	−0.623750
inability	1.95	0.485	−0.598384	0.311300	−0.230393	1.000000	0.317643	0.476389
DESI	44.14	7.120	0.193288	−0.428128	0.688175	0.317643	1.000000	0.099364
inclusive growth	37,158.33	1029.280	−0.826708	−0.495560	−0.623750	0.476389	0.099364	1.000000
		R = 0.82670836 R2 = 0.68344671 Adjusted R2 = 0.60430839 F(1,4) = 8.6361 p < 0.04244
			Coefficients	St. Dev.	p-Statistic	p-Value
constant			61,316.40	8224.844	7.45502	0.001730
RES	−0.826708	0.281315	−705.07	239.924	−2.93872	0.042443
Belgium
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	11.38	2.088	1.000000	−0.844535	0.978255	−0.455743	0.962454	0.246234
bills	3.77	0.606	−0.844535	1.000000	−0.795304	0.465286	−0.856396	−0.481000
exp	24.62	0.900	0.978255	−0.795304	1.000000	−0.377725	0.895021	0.086796
inability	4.60	0.894	−0.455743	0.465286	−0.377725	1.000000	−0.429723	−0.063433
DESI	42.50	5.546	0.962454	−0.856396	0.895021	−0.429723	1.000000	0.491095
inclusive growth	35,671.67	1046.946	0.246234	−0.481000	0.086796	−0.063433	0.491095	1.000000
Bulgaria
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	20.451	1.7514	1.000000	−0.019674	0.694824	−0.030187	−0.128359	−0.313725
bills	24.833	5.4724	−0.019674	1.000000	0.630625	0.979382	−0.928941	−0.797745
exp	19.450	0.6091	0.694824	0.630625	1.000000	0.638713	−0.789255	−0.874357
inability	29.000	5.5162	−0.030187	0.979382	0.638713	1.000000	−0.956339	−0.862333
DESI	29.648	4.9801	−0.128359	−0.928941	−0.789255	−0.956339	1.000000	0.957242
inclusive growth	6685.000	563.8706	−0.313725	−0.797745	−0.874357	−0.862333	0.957242	1.000000
		R = 0.95724208 R2 = 0.91631240 Adjusted R2 = 0.89539050 F(1,4) = 43.797 p < 0.00270
			Coefficients	St. Dev.	p-Statistic	p-Value
constant			3471.663	491.2264	7.067339	0.002115
DESI	0.957242	0.144644	108.383	16.3772	6.617916	0.002703
Croatia
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	29.00	1.711	1.000000	−0.618872	0.542210	−0.929518	0.346111	−0.022985
bills	16.10	2.731	−0.618872	1.000000	−0.088178	0.681305	−0.656223	−0.423515
exp	16.77	1.520	0.542210	−0.088178	1.000000	−0.460236	−0.413635	−0.777101
inability	6.68	0.847	−0.929518	0.681305	−0.460236	1.000000	−0.434785	−0.072204
DESI	37.53	6.595	0.346111	−0.656223	−0.413635	−0.434785	1.000000	0.893816
inclusive growth	12,848.33	1154.754	−0.022985	−0.423515	−0.777101	−0.072204	0.893816	1.000000
		R = 0.89381647 R2 = 0.79890788 Adjusted R2 = 0.74863485 F(1,4) = 15.891 p < 0.01631
			Coefficients	St. Dev.	p-Statistic	p-Value
constant			6973.804	1492.477	4.672638	0.009500
DESI	0.893816	0.224216	156.510	39.261	3.986400	0.016314
Cyprus
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	15.59	3.480	1.000000	−0.940426	0.792064	−0.959948	0.886011	0.833220
bills	10.45	2.123	−0.940426	1.000000	−0.787302	0.943291	−0.858867	−0.815410
exp	16.20	1.631	0.792064	−0.787302	1.000000	−0.661916	0.577248	0.369507
inability	20.88	1.425	−0.959948	0.943291	−0.661916	1.000000	−0.910905	−0.936586
DESI	35.99	7.181	0.886011	−0.858867	0.577248	−0.910905	1.000000	0.907836
inclusive growth	25,305.00	1495.069	0.833220	−0.815410	0.369507	−0.936586	0.907836	1.000000
		R = 0.83322016 R2 = 0.69425583 Adjusted R2 = 0.61781979 F(1,4) = 9.0828 p < 0.03940
			Coefficients	St. Dev.	p-Statistic	p-Value
constant			19,722.71	1890.302	10.43363	0.000477
RES	0.833220	0.276471	358.01	118.790	3.01377	0.039404
Czechia
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	16.56	1.3938	1.000000	−0.675901	0.454088	−0.514732	0.952491	0.537054
bills	1.88	0.2229	−0.675901	1.000000	−0.571828	0.637876	−0.559408	−0.620610
exp	26.83	1.0463	0.454088	−0.571828	1.000000	−0.979298	0.202653	−0.101622
inability	2.65	0.3728	−0.514732	0.637876	−0.979298	1.000000	−0.289628	−0.064492
DESI	39.21	6.3209	0.952491	−0.559408	0.202653	−0.289628	1.000000	0.614187
inclusive growth	18,325.00	453.3321	0.537054	−0.620610	−0.101622	−0.064492	0.614187	1.000000
Denmark
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	36.9	3.831	1.000000	−0.583734	−0.027358	0.548557	0.751865	0.979802
bills	3.8	0.759	−0.583734	1.000000	0.006554	−0.091430	−0.521519	−0.572310
exp	28.6	0.402	−0.027358	0.006554	1.000000	0.634590	0.545802	0.058490
inability	3.2	0.922	0.548557	−0.091430	0.634590	1.000000	0.693123	0.520267
DESI	56.3	9.192	0.751865	−0.521519	0.545802	0.693123	1.000000	0.786345
inclusive growth	137,142.7	2510.268	0.979802	−0.572310	0.058490	0.520267	0.786345	1.000000
		R = 0.97980190 R2 = 0.96001177 Adjusted R2 = 0.95001471 F(1,4) = 96.029 p < 0.00061
			Coefficients	St. Dev.	p-Statistic	p-Value
constant			113,451.7	2428.415	46.71841	0.000001
RES	0.979802	0.099985	642.0	65.517	9.79946	0.000608
Estonia
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	32.81	4.083	1.000000	−0.736369	0.959460	0.133823	0.915779	0.787556
bills	5.58	1.258	−0.736369	1.000000	−0.809262	−0.109591	−0.814011	−0.754561
exp	19.45	1.850	0.959460	−0.809262	1.000000	0.349613	0.957780	0.715341
inability	2.63	0.489	0.133823	−0.109591	0.349613	1.000000	0.222176	−0.320658
DESI	48.44	5.684	0.915779	−0.814011	0.957780	0.222176	1.000000	0.829506
inclusive growth	83,735.67	3988.994	0.787556	−0.754561	0.715341	−0.320658	0.829506	1.000000
		R = 0.82950623 R2 = 0.68808058 Adjusted R2 = 0.61010072 F(1,4) = 8.8238 p < 0.04112
			Coefficients	St. Dev.	p-Statistic	p-Value
constant			55,540.22	9546.158	5.818071	0.004345
DESI	0.829506	0.279249	582.12	195.968	2.970492	0.041124
Finland
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	42.3	1.270	1.000000	−0.469375	0.859196	−0.323429	0.796449	−0.777216
bills	7.2	0.856	−0.469375	1.000000	−0.744095	0.886693	−0.894499	0.320021
exp	29.3	0.930	0.859196	−0.744095	1.000000	−0.508851	0.875059	−0.699994
inability	1.7	0.259	−0.323429	0.886693	−0.508851	1.000000	−0.805676	0.387355
DESI	54.8	6.153	0.796449	−0.894499	0.875059	−0.805676	1.000000	−0.619082
inclusive growth	123,908.3	1014.275	−0.777216	0.320021	−0.699994	0.387355	−0.619082	1.000000
France
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	18.0	1.748	1.000000	0.444563	0.502846	0.805893	0.956743	−0.627693
bills	6.3	0.701	0.444563	1.000000	−0.153265	0.424721	0.583542	−0.001488
exp	26.8	0.912	0.502846	−0.153265	1.000000	−0.043676	0.237252	−0.872621
inability	6.6	2.135	0.805893	0.424721	−0.043676	1.000000	0.903873	−0.253477
DESI	41.8	7.122	0.956743	0.583542	0.237252	0.903873	1.000000	−0.403587
inclusive growth	128,054.6	3284.057	−0.627693	−0.001488	−0.872621	−0.253477	−0.403587	1.000000
		R = 0.87262123 R2 = 0.76146781 Adjusted R2 = 0.70183476 F(1,4) = 12.769 p < 0.02330
			Coefficients	St. Dev.	p-Statistic	p-Value
Constant			212,147.6	23,544.39	9.01053	0.000840
exp	−0.872621	0.244199	−3143.7	879.74	−3.57341	0.023305
Germany
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	18.1	1.978	1.000000	0.814377	0.654486	0.706895	0.971100	0.480918
bills	3.2	0.731	0.814377	1.000000	0.539151	0.661866	0.849316	0.607980
exp	24.6	0.745	0.654486	0.539151	1.000000	0.572257	0.551721	0.144918
inability	4.3	2.041	0.706895	0.661866	0.572257	1.000000	0.620745	−0.129438
DESI	41.5	7.407	0.971100	0.849316	0.551721	0.620745	1.000000	0.634676
inclusive growth	121,270.6	1394.645	0.480918	0.607980	0.144918	−0.129438	0.634676	1.000000
Greece
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	20.24	2.245	1.000000	−0.739059	0.208724	−0.855050	0.879044	−0.601980
bills	32.53	4.585	−0.739059	1.000000	−0.504808	0.858635	−0.392277	0.702522
exp	20.42	1.422	0.208724	−0.504808	1.000000	−0.196639	−0.159510	−0.826418
inability	19.93	3.479	−0.855050	0.858635	−0.196639	1.000000	−0.578174	0.636181
DESI	28.40	6.278	0.879044	−0.392277	−0.159510	−0.578174	1.000000	−0.204541
inclusive growth	89,868.68	3440.339	−0.601980	0.702522	−0.826418	0.636181	−0.204541	1.000000
		R = 0.82641774 R2 = 0.68296628 Adjusted R2 = 0.60370786 F(1,4) = 8.6170 p < 0.04258
			Coefficients	St. Dev.	p-Statistic	p-Value
constant			130,694.1	13,935.74	9.37834	0.000720
exp	−0.826418	0.281529	−1999.6	681.19	−2.93546	0.042581
Hungary
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	13.65	0.993	1.000000	−0.466271	0.827344	−0.483964	0.849890	0.428687
bills	10.63	1.820	−0.466271	1.000000	−0.767905	0.784321	−0.860722	−0.956746
exp	21.33	1.152	0.827344	−0.767905	1.000000	−0.825586	0.937722	0.657750
inability	5.43	0.935	−0.483964	0.784321	−0.825586	1.000000	−0.735497	−0.659944
DESI	34.81	5.801	0.849890	−0.860722	0.937722	−0.735497	1.000000	0.812697
inclusive growth	78,264.06	2736.312	0.428687	−0.956746	0.657750	−0.659944	0.812697	1.000000
		R = 0.81269725 R2 = 0.66047683 Adjusted R2 = 0.57559604 F(1,4) = 7.7812 p < 0.04934
			Coefficients	St. Dev.	p-Statistic	p-Value
			64,918.78	4839.172	13.41527	0.000179
DESI	0.812697	0.291343	383.35	137.428	2.78949	0.049338
Ireland
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	12.5	2.04	1.000000	−0.355155	0.960748	−0.135150	0.465487	0.482365
bills	8.8	0.98	−0.355155	1.000000	−0.554876	0.722838	−0.226979	−0.360158
exp	26.0	1.38	0.960748	−0.554876	1.000000	−0.236898	0.569751	0.615635
inability	4.6	1.23	−0.135150	0.722838	−0.236898	1.000000	0.395136	0.259204
DESI	50.5	8.16	0.465487	−0.226979	0.569751	0.395136	1.000000	0.988926
inclusive growth	214,643.0	24,227.65	0.482365	−0.360158	0.615635	0.259204	0.988926	1.000000
		R = 0.98892570 R2 = 0.97797403 Adjusted R2 = 0.97246754 F(1,4) = 177.60 p < 0.00018
			Coefficients	St. Dev.	p-Statistic	p-Value
			66,463.28	11,239.39	5.91343	0.004095
DESI	0.988926	0.074206	2936.14	220.32	13.32681	0.000183
Italy
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	18.7	0.910	1.000000	0.699807	0.949515	−0.735486	0.437191	−0.614969
bills	5.2	0.838	0.699807	1.000000	0.800936	−0.726338	0.384174	−0.253323
exp	23.5	1.103	0.949515	0.800936	1.000000	−0.842392	0.623366	−0.406064
inability	10.9	3.091	−0.735486	−0.726338	−0.842392	1.000000	−0.804735	0.067549
DESI	36.6	7.630	0.437191	0.384174	0.623366	−0.804735	1.000000	0.389528
inclusive growth	127,338.5	4254.656	−0.614969	−0.253323	−0.406064	0.067549	0.389528	1.000000
Latvia
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	41.25	1.572	1.000000	−0.651013	0.607318	−0.723304	0.975409	0.768782
bills	7.63	1.447	−0.651013	1.000000	−0.518551	0.465495	−0.785173	−0.882334
exp	21.50	0.807	0.607318	−0.518551	1.000000	−0.894160	0.569763	0.432195
inability	7.20	1.657	−0.723304	0.465495	−0.894160	1.000000	−0.682851	−0.585589
DESI	42.95	4.568	0.975409	−0.785173	0.569763	−0.682851	1.000000	0.872169
inclusive growth	74,026.19	3653.948	0.768782	−0.882334	0.432195	−0.585589	0.872169	1.000000
		R = 0.87216925 R2 = 0.76067919 Adjusted R2 = 0.70084899 F(1,4) = 12.714 p < 0.02347
			Coefficients	St. Dev.	p-Statistic	p-Value
			44,064.72	8442.291	5.219521	0.006430
DESI	0.872169	0.244602	697.64	195.655	3.565665	0.023467
Lithuania
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	26.79	1.815	1.000000	−0.753860	0.937789	−0.924102	0.881634	0.840944
bills	8.05	2.960	−0.753860	1.000000	−0.748546	0.844135	−0.880531	−0.949843
exp	15.45	0.589	0.937789	−0.748546	1.000000	−0.974168	0.921179	0.822458
inability	24.43	4.259	−0.924102	0.844135	−0.974168	1.000000	−0.983483	−0.900254
DESI	43.77	5.741	0.881634	−0.880531	0.921179	−0.983483	1.000000	0.941133
inclusive growth	89,530.47	5152.232	0.840944	−0.949843	0.822458	−0.900254	0.941133	1.000000
		R = 0.94113316 R2 = 0.88573163 Adjusted R2 = 0.85716454 F(1,4) = 31.005 p < 0.00510
			Coefficients	St. Dev.	p-Statistic	p-Value
			52,556.91	6687.495	7.858983	0.001416
DESI	0.941133	0.169018	844.65	151.690	5.568241	0.005096
Luxembourg
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	10.0	3.134	1.000000	0.862007	−0.230241	0.324472	0.931176	−0.709452
bills	3.1	0.967	0.862007	1.000000	−0.513602	−0.010132	0.789152	−0.535895
exp	22.7	0.958	−0.230241	−0.513602	1.000000	0.681037	−0.443807	−0.118836
inability	2.4	0.612	0.324472	−0.010132	0.681037	1.000000	0.201611	−0.756239
DESI	50.4	5.742	0.931176	0.789152	−0.443807	0.201611	1.000000	−0.616138
inclusive growth	279,172.4	3545.067	−0.709452	−0.535895	−0.118836	−0.756239	−0.616138	1.000000
Netherlands
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	10.8	3.658	1.000000	−0.603288	0.357754	0.541971	0.897933	0.050079
bills	1.6	0.295	−0.603288	1.000000	−0.412500	−0.094590	−0.618823	−0.101522
exp	24.6	1.019	0.357754	−0.412500	1.000000	−0.572403	0.039432	−0.728620
inability	3.0	1.183	0.541971	−0.094590	−0.572403	1.000000	0.700811	0.624377
DESI	54.8	8.528	0.897933	−0.618823	0.039432	0.700811	1.000000	0.477578
inclusive growth	127,336.8	2875.326	0.050079	−0.101522	−0.728620	0.624377	0.477578	1.000000
Poland
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	14.43	2.482	1.000000	−0.886185	0.677507	−0.705476	0.875430	0.828499
bills	5.83	1.469	−0.886185	1.000000	−0.572067	0.739187	−0.847084	−0.812349
exp	18.58	0.637	0.677507	−0.572067	1.000000	−0.655394	0.735939	0.503671
inability	4.43	1.115	−0.705476	0.739187	−0.655394	1.000000	−0.514085	−0.379595
DESI	32.02	5.895	0.875430	−0.847084	0.735939	−0.514085	1.000000	0.952876
inclusive growth	82,212.75	5402.883	0.828499	−0.812349	0.503671	−0.379595	0.952876	1.000000
		R = 0.82849917 R2 = 0.68641088 Adjusted R2 = 0.60801360 F(1,4) = 8.7555 p < 0.04160
			Coefficients	St. Dev.	p-Statistic	p-Value
			56,187.78	8903.014	6.311097	0.003223
RES	0.828499	0.279995	1803.82	609.611	2.958977	0.041597
Portugal
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	32.35	2.066	1.000000	−0.184171	0.545999	−0.874331	0.902914	0.008681
bills	4.65	0.748	−0.184171	1.000000	−0.393204	0.229660	−0.171957	0.423315
exp	18.20	1.259	0.545999	−0.393204	1.000000	−0.574844	0.196649	−0.805243
inability	18.35	1.473	−0.874331	0.229660	−0.574844	1.000000	−0.846066	0.006621
DESI	42.27	5.577	0.902914	−0.171957	0.196649	−0.846066	1.000000	0.381014
inclusive growth	82,898.42	2401.296	0.008681	0.423315	−0.805243	0.006621	0.381014	1.000000
Romania
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	24.18	0.271	1.000000	0.470297	0.607978	0.045773	−0.270928	−0.492071
bills	13.83	3.551	0.470297	1.000000	0.396593	0.575012	−0.098509	−0.233059
exp	18.68	1.052	0.607978	0.396593	1.000000	0.141499	−0.528166	−0.567365
inability	10.92	2.207	0.045773	0.575012	0.141499	1.000000	0.639292	0.567986
DESI	24.21	4.243	−0.270928	−0.098509	−0.528166	0.639292	1.000000	0.951232
inclusive growth	84,843.25	8415.324	−0.492071	−0.233059	−0.567365	0.567986	0.951232	1.000000
		R = 0.95123243 R2 = 0.90484313 Adjusted R2 = 0.88105392 F(1,4) = 38.036 p < 0.00351
			Coefficients	St. Dev.	p-Statistic	p-Value
			39,176.77	7498.791	5.224412	0.006408
DESI	0.951232	0.154238	1886.62	305.905	6.167321	0.003509
Slovakia
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	15.42	2.907	1.000000	−0.255855	0.791013	0.770483	0.786512	0.844065
bills	6.25	1.540	−0.255855	1.000000	−0.757272	0.334033	−0.441581	−0.065007
exp	29.63	1.362	0.791013	−0.757272	1.000000	0.231201	0.780032	0.611098
inability	5.92	1.332	0.770483	0.334033	0.231201	1.000000	0.519554	0.732670
DESI	35.72	5.204	0.786512	−0.441581	0.780032	0.519554	1.000000	0.831798
inclusive growth	77,991.54	1628.859	0.844065	−0.065007	0.611098	0.732670	0.831798	1.000000
		R = 0.84406547 R2 = 0.71244651 Adjusted R2 = 0.64055814 F(1,4) = 9.9105 p < 0.03458
			Coefficients	St. Dev.	p-Statistic	p-Value
			70,699.44	2350.418	30.07951	0.000007
RES	0.844065	0.268120	472.90	150.220	3.14809	0.034578
Slovenia
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	23.33	1.835	1.000000	−0.900207	0.493285	−0.610585	0.838656	0.559550
bills	10.27	2.955	−0.900207	1.000000	−0.109465	0.762992	−0.973866	−0.832676
exp	19.23	0.843	0.493285	−0.109465	1.000000	0.147143	−0.019513	−0.440053
inability	2.77	0.769	−0.610585	0.762992	0.147143	1.000000	−0.674600	−0.814009
DESI	43.12	6.576	0.838656	−0.973866	−0.019513	−0.674600	1.000000	0.874297
inclusive growth	95,098.52	3279.654	0.559550	−0.832676	−0.440053	−0.814009	0.874297	1.000000
		R = 0.83267605 R2 = 0.69334941 Adjusted R2 = 0.61668676 F(1,4) = 9.0442 p < 0.03965
			Coefficients	St. Dev.	p-Statistic	p-Value
			104,587.3	3262.268	32.05968	0.000006
Bills	−0.832676	0.276880	−924.2	307.324	−3.00735	0.039654
Spain
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	19.5	2.098	1.000000	0.917398	0.616607	0.884023	0.898483	−0.841609
bills	8.2	1.354	0.917398	1.000000	0.779295	0.790405	0.711079	−0.912486
exp	23.0	1.559	0.616607	0.779295	1.000000	0.277077	0.305081	−0.942533
inability	11.1	3.800	0.884023	0.790405	0.277077	1.000000	0.936433	−0.558223
DESI	49.4	7.477	0.898483	0.711079	0.305081	0.936433	1.000000	−0.588103
inclusive growth	106,963.2	4116.080	−0.841609	−0.912486	−0.942533	−0.558223	−0.588103	1.000000
		R = 0.84160889 R2 = 0.70830552 Adjusted R2 = 0.63538190 F(1,4) = 9.7130 p < 0.03564
			Coefficients	St. Dev.	p-Statistic	p-Value
			139,148.6	10,376.93	13.40942	0.000179
RES	−0.841609	0.270044	−1651.3	529.85	−3.11657	0.035645
Sweden
	Mean	St. Dev.	RES	bills	exp	inability	DESI	inclusive growth
RES	58.9	4.827	1.000000	0.739881	−0.159903	0.531752	0.984898	0.866103
bills	2.5	0.553	0.739881	1.000000	−0.485416	0.854864	0.727907	0.553645
exp	25.8	0.410	−0.159903	−0.485416	1.000000	−0.166713	−0.140137	−0.414322
inability	2.3	0.585	0.531752	0.854864	−0.166713	1.000000	0.483143	0.149800
DESI	54.6	7.335	0.984898	0.727907	−0.140137	0.483143	1.000000	0.884583
inclusive growth	123,884.9	3275.506	0.866103	0.553645	−0.414322	0.149800	0.884583	1.000000
		R = 0.86610268 R2 = 0.75013386 Adjusted R2 = 0.68766732 F(1,4) = 12.009 p < 0.02569
			Coefficients (α)	St. Dev.	p-Statistic	p-Value
			89,267.26	10,017.61	8.911037	0.000877
RES	0.866103	0.249933	587.73	169.60	3.465339	0.025692

Source: own elaboration based on [57,58,59,60,61].

, all p values are in the critical region, so the relationship is statistically significant.

5. Conclusions, Limitations and Discussion

Due to limited data, we only considered the impact of a few variables (energy poverty, socio-digital development and RES) on inclusive growth. The comparative indicator analysis conducted in EU countries in the years 2017–2022 allowed us to partially answer the research questions.

The level of energy poverty is different in individual countries, although it can be seen that in general in the so-called old EU countries the level of energy poverty is lower (QR1) than in the new EU countries. Moreover, comparing the indicators (only for 3 years) of inclusive growth (IGI) and indicators illustrating energy poverty, a negative relationship can be seen—the higher the level of inclusiveness achieved the economy, the lower the level of risk of energy poverty (QR1). Observation of the IGI indicator in the following years and comparing it with energy poverty indicators seem to be an interesting research direction in the future—thanks to the longer observation period—research in this area will give an even better answer to the asked research questions.

Comparing indicators over time, one can also see other relationships. The level of RES use in individual countries also varies. And similarly to the observations above—usually in the so-called old EU countries the level of RES use was higher than in the new EU countries. Moreover, in countries with higher RES use, the level of energy poverty was usually lower than in countries with low use of energy from renewable sources (QR2). A large share of RES had, for example, an impact on the inability to heat the home adequately warm, or on arrears on utility bills (negative relationship—in general the higher the share of RES in a given country, the lower the percentage of the population having problems with maintaining an appropriate temperature at home; similarly, the higher the share of RES, the lower the percentage of the population having arrears in utility bills). The use of more modern systems using renewable energy sources can contribute to a more effective use of energy, and thus contribute to reducing energy expenditure and better heating the home (reducing energy poverty).

Comparing EU countries in the years 2017–2022, it can also be observed that along with social and digital development, the degree of inclusiveness of economies increases (QR3). In general old EU countries with higher levels of social and digital development usually also have higher levels of inclusiveness. These countries are also less affected by energy poverty. However, significant differences between countries should be pointed out.

Similar results were obtained after regression analysis in individual countries. Statistically significant models were usually explained by one variable—DESI or RES (QR1- QR3). This means that these parameters have the greatest (in general—positive) impact on inclusive growth.

The main findings and conclusions of the analysis show that the relationship between fuel poverty and the level of renewable energy use, digital and social development and inclusive growth varies across EU countries, especially between ‘old’ and ‘new’ countries. The results of our analysis can be useful, for example, for government policy makers in terms of actions to eradicate energy poverty through the use of sustainable energy sources in the country. And also the design and implementation of measures to enhance digital and social development, which in turn will contribute to inclusive growth. The use of renewable energy will be subject to certain constraints in the future, such as higher technological requirements, including storage, and higher development costs.

Perhaps a longer time period of data or the inclusion of other variables could have produced different results and differently determined their impact on the assessment of the inclusiveness of economies. It should be noted, that also other factors, not explored in the empirical studies above, such as legislative actions and environmental regulations, the degree of urbanisation and the construction of urban infrastructure, may also be a constraint on inclusive development.

Inclusive development is directly linked to green economic growth and sustainable development in general, and digitalisation is an important inclusive factor [66,67].

An important economic phenomenon to take into account is inflation, which has a negative impact on economic growth, the impact of this phenomenon can be offset by lowering the inflation rate thus promoting inclusive growth [68].

6. Summary

There is no doubt that inclusive growth ensures fairness in the economic growth process.

Referring to inclusive growth, it is important to point out that the poor level of industrial infrastructure, and the need for renewable energy as a global trend and the extent of the energy transition are conducive to investment. It is the actions that support the innovation of the concept of development of companies and economies, and thus promote entrepreneurship, so that additional resources are available to promote change and develop the structure of industry that promotes green growth [69]. Individual economies must actively influence influential and inclusive factors, for example by changing the economic model or optimising the industrial structure, increasing employment or demand. The quality of human capital has a major impact, as does the creation of appropriate equal and non-discriminatory conditions for citizens. In this way, the quality of life of citizens can be improved by promoting technological innovation, increasing the contribution of other factors such as digitalisation and renewable energy to promoting sustainable and efficient economic growth.

Inclusive growth is a multidimensional concept that can refer to equality, national or regional empowerment, opportunity, participation, satisfaction or a combination of these for society and consequently for economies [70]. It is influenced by many factors and is often interdependent or has a positive impact not only on achieving higher levels of individual indicators, but also on higher levels of inclusive growth. And it can be stimulated through various initiatives and activities, which are often linked to measures supporting sustainable development, bridging the energy and social and digital divide, through digital development and the simultaneous use of renewable energy sources. The development of telecommunications infrastructure and internet networks can better manage social and economic development.