The impact of solar power farm expansion on the level of freshwater stress in the EU region

It is of great significance to objectively evaluate the effects of the National Renewable Energy Action Plan (NREAP) policies for the implementation and improvement of the policy itself in the solar power farms. Based on the panel data of 27 members of the European Union from 1990 to 2023, this study uses a heterogeneous timing difference-in-difference model to examine associations between NREAP policy-driven solar expansion and water stress levels in the European Union members (EU27). This study finds significant associations between policy implementation and solar panel production towards lower carbon dioxide emissions and a higher level of water stress in Western European Union members in comparison with those in Central and Eastern European Union members. Moreover, the policies have a significant impact on the solar power farm expansion and agriculture production, and land use change factors in Western European countries in comparison to the Central and Eastern European countries. These outcomes were verified by a placebo test, showing that the policy is effective, and put forward some suggestions for the further promotion of the transformation of solar power farm expansion, but without consideration for resource conservation and sustainability.