Vincentas Giedraitis

Economic Growth and Energy Security: Economic and Environmental Solutions in a Changing Europe Vincentas Giedraitis

The main goal of this project is to find out how to maintain positive economic growth in the light of increasing energy dependency in Lithuania. An empirical analysis has been performed whereby correlation analysis was used to establish the relationship between economic growth and energy dependency in the Eastern European country of Lithuania. We found that there is a net inverse relationship between energy dependency and economic growth. Lithuania has to rely much more on energy imports especially after the Ignalina Nuclear Power Plant's closure in 2010. In order to maintain positive economic growth, it is vital to look for viable ways to reduce energy dependency. One of the ways - by producing biofuels for the transport sector domestically and thereby reducing imports is a sizeable component of Lithuania?s gross domestic product. Current domestic installed capacities for producing biofuels are not sufficient. A worsening energy situation in Lithuania require more efficient use of already installed capacities and investments in new ones. Renewable energy production can be one of the solutions contributing to energy security.