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A Comprehensive Analysis of Renewable Energy Based on Integrating Economic Cybernetics and the Autoregressive Distributed Lag Model—The Case of Romania

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Listed:
  • Armenia Androniceanu

    (Faculty of Administration and Public Management, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Irina Georgescu

    (Faculty of Economic Cybernetics, Statistics and Informatics, Department of Economic Informatics and Cybernetics, Bucharest University of Economic Studies, 0100374 Bucharest, Romania)

  • Ionuț Nica

    (Faculty of Economic Cybernetics, Statistics and Informatics, Department of Economic Informatics and Cybernetics, Bucharest University of Economic Studies, 0100374 Bucharest, Romania)

  • Nora Chiriță

    (Faculty of Economic Cybernetics, Statistics and Informatics, Department of Economic Informatics and Cybernetics, Bucharest University of Economic Studies, 0100374 Bucharest, Romania)

Abstract

Renewable energy represents a crucial resource in the efforts to combat climate change and reduce dependence on fossil fuels. In the past few decades, Romania has lessened its environmental footprint and played an important role in actions against climate change. In this research, the energy sector in Romania is analyzed from a holistic perspective as a complex adaptive system by using econometric tools. The purpose of the research is to analyze the Romanian energy sector as a cybernetic system and to study the long-run and the short-run causal impact of greenhouse gas emissions (GHG) and renewable energy (RE) on real GDP per capita. The causality among GHG, foreign direct investment (FDI), RE, and real GDP is checked by means of the autoregressive distributed lag model (ARDL). The time series are extracted from Eurostat and OECD databases and cover the period 2000-2021. The results reveal that (i) the variables are cointegrated according to the ARDL bounds test; (ii) in the long run, GHG negatively impacts GDP, RE positively impacts GDP; (iii) in the short run, GHG and RE positively impact GDP; (iv) the speed of adjustment is around 32%. The study holds significance both for scholars and the policy makers from the governmental environment agencies that should decide how to effectively reduce GHG emissions, promote renewable energy adoption, and design policies to facilitate the transition to a low-carbon economy.

Suggested Citation

  • Armenia Androniceanu & Irina Georgescu & Ionuț Nica & Nora Chiriță, 2023. "A Comprehensive Analysis of Renewable Energy Based on Integrating Economic Cybernetics and the Autoregressive Distributed Lag Model—The Case of Romania," Energies, MDPI, vol. 16(16), pages 1-28, August.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:16:p:5978-:d:1217210
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    Cited by:

    1. Ionuț Nica & Irina Georgescu & Camelia Delcea & Nora Chiriță, 2023. "Toward Sustainable Development: Assessing the Effects of Financial Contagion on Human Well-Being in Romania," Risks, MDPI, vol. 11(11), pages 1-32, November.
    2. Ionuț Nica & Ștefan Ionescu & Camelia Delcea & Nora Chiriță, 2024. "Quantitative Modeling of Financial Contagion: Unraveling Market Dynamics and Bubble Detection Mechanisms," Risks, MDPI, vol. 12(2), pages 1-42, February.
    3. Oana Vlăduţ & George Eduard Grigore & Dumitru Alexandru Bodislav & Gabriel Ilie Staicu & Raluca Iuliana Georgescu, 2024. "Analysing the Connection between Economic Growth, Conventional Energy, and Renewable Energy: A Comparative Analysis of the Caspian Countries," Energies, MDPI, vol. 17(1), pages 1-30, January.

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