Sectorial Transition to Renewable Energy Sources: The Case of Slovakia

This paper investigates the determinants of renewable energy use across nine manufacturing sectors in Slovakia during the period 2004–2024, with particular attention to the Russia-Ukraine war. Using sector-level panel data, the study examines how relative energy prices, sectoral economic activity, and a war-period shock are associated with the share of renewable energy in final energy consumption. The results reveal substantial and persistent heterogeneity in renewable energy use across manufacturing industries. The paper, pulp and printing sector and the wood and wood products sector exhibit considerably higher renewable energy shares than other manufacturing sectors, reflecting the importance of sector-specific production characteristics and biomass availability. By contrast, neither relative energy prices, sectoral value added, nor the war period are statistically significantly associated with renewable energy shares. These findings remain robust across alternative panel-data specifications. The results suggest that renewable energy use in Slovak manufacturing is shaped primarily by structural and technological characteristics of individual industries rather than by short-term economic incentives or recent geopolitical developments. The study highlights the importance of sector-specific approaches to industrial transition and demonstrates that aggregate analyses may conceal substantial differences in renewable energy adoption across manufacturing sectors.