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Renewable Energy, Urbanization, Fossil Fuel Consumption, and Economic Growth Dilemma in Romania: Examining the Short- and Long-Term Impact

Author

Listed:
  • Abdul Rehman

    (College of Economics and Management, Henan Agricultural University, Zhengzhou 450002, China)

  • Magdalena Radulescu

    (Department of Finance, Accounting, Economics, University of Pitesti, Str. Targu din Vale, No. 1, 110040 Pitesti, Romania
    Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, Bd, Victoriei, No. 10, 550024 Sibiu, Romania)

  • Laura Mariana Cismaș

    (Faculty of Economics and Business Administration, West University of Timisoara, 300006 Timisoara, Romania)

  • Cristian-Mihai Cismaș

    (Assistant Inspector, Timis Regional Directorate of Statistics, 300054 Timisoara, Romania)

  • Abbas Ali Chandio

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Smaranda (Toma) Simoni

    (Department of Management and Business Administration, University of Pitesti, Str. Targu din Vale, No. 1, 110040 Pitesti, Romania)

Abstract

The primary objective of this research was to determine the impact of renewable energy, alternative and nuclear energy, urbanization, energy use, and fossil fuel energy consumption on Romanian economic development. To investigate the relation between variables, we employed the Autoregressive Distributed Lag (ARDL) technique in conjunction with FMOLS (Fully Modified Least Squares) and CCR (Canonical Cointegrating Regression). Long-run and short-run findings suggest that alternative and nuclear energy, as well as fossil fuel consumption, has a positive association with economic growth, but renewable energy, urbanization, and energy usage have an adversative relationship with economic growth. Similarly, FMOLS and CCR statistics indicate that alternative and nuclear energy and fossil fuel consumption have a favorable impact on economic development. Renewable energy consumption, urbanization, and energy use, on the other hand, revealed a negative connection with economic progress. Conservative solutions are necessary to implement appropriate policies to address energy consumption concerns in Romania in order to improve economic development.

Suggested Citation

  • Abdul Rehman & Magdalena Radulescu & Laura Mariana Cismaș & Cristian-Mihai Cismaș & Abbas Ali Chandio & Smaranda (Toma) Simoni, 2022. "Renewable Energy, Urbanization, Fossil Fuel Consumption, and Economic Growth Dilemma in Romania: Examining the Short- and Long-Term Impact," Energies, MDPI, vol. 15(19), pages 1-18, September.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:19:p:7180-:d:929131
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