Linking the Deployment of Renewable Energy Technologies with Multidimensional Societal Welfare: A Panel Data Analysis

Given global efforts to promote sustainable energy transitions, this study investigates how the deployment of renewable energy technologies (RETs) relates to multidimensional societal welfare and provides empirical evidence on these linkages in Lithuania. The purpose of the study is to provide an integrated, Lithuania-specific assessment of how economic, social, and environmental determinants associated with RET deployment are related to multiple dimensions of societal welfare. Drawing on scientific literature, an integrated indicator framework is developed that links the economic, social, and environmental determinants of renewable energy technology (RET) deployment to six societal welfare dimensions, as defined by the Lithuanian Quality of Life Index. Using official Lithuanian statistics for 2020–2024, a standardized panel dataset is constructed and Pearson correlation analysis and multiple linear regression are applied using aggregated determinant categories, with model assumptions verified using the Breusch–Pagan and Durbin–Watson tests. Correlation results show very strong positive links between RET intensity indicators and key economic welfare measures (for example, wages, GDP per capita, foreign direct investment, disposable income), with absolute correlation coefficients typically between 0.90 and 0.99 (p < 0.05), and strong negative correlations between air-pollution indicators and GDP, income, FDI, and education (correlation coefficients between −0.96 and −0.90; p < 0.05). The results indicate that RET-related economic determinants have a statistically significant positive effect on the societal welfare dimensions of material living conditions; entrepreneurship/business competitiveness; and public infrastructure, living-environment quality/safety. Social factors also significantly support the societal welfare dimensions of entrepreneurship/business competitiveness and public infrastructure, living-environment quality/safety. In the retained regression models, explanatory power is very high (R² between 0.91 and 0.999), with positive and statistically significant coefficients for the economic determinant (regression coefficients between 0.43 and 0.96; p < 0.05) and negative, statistically significant coefficients for the environmental determinant in the entrepreneurship and public-infrastructure dimensions (regression coefficients between −1.13 and −1.51; p < 0.05). Environmental determinants are associated with lower air pollution but show negative effects on the societal welfare dimensions of entrepreneurship/business competitiveness and public infrastructure, living-environment quality/safety. Overall, the findings suggest that RET deployment is an important correlate of the economic aspects of societal welfare, while environmental and social dimensions display more complex, domain-specific impacts.