IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i2p871-d1033262.html
   My bibliography  Save this article

Final Energy Consumption—Growth Nexus in Romania Versus the European Union: A Sectoral Approach Using Neural Network

Author

Listed:
  • Georgeta Soava

    (Department of Statistics and Economic Informatics, University of Craiova, A.I. Cuza 13, 200585 Craiova, Romania)

  • Anca Mehedintu

    (Department of Statistics and Economic Informatics, University of Craiova, A.I. Cuza 13, 200585 Craiova, Romania)

Abstract

The energy crisis caused first by the COVID-19 pandemic and continued by the Russo-Ukrainian War has demonstrated that energy is a determining factor in the conduct of activities of any state. Several studies have examined the relationship between energy consumption and economic growth, developing various theories, but there is no consensus. This study investigates relationships by analyzing several regression models and choosing the fittest. Then, the verification of its validity is performed through the neural network, which gives greater credibility to the results obtained. Furthermore, using a structural analysis, the investigation is expanded to ranking the impact of sector-specific energy consumption on economic growth. The research includes data from 1995 to 2020 for the European Union (EU) and Romania. The results indicate that short-term energy consumption can have a positive or negative impact on economic growth, both in the EU and Romania. The structural analysis highlights the direct and indirect effects, with different intensities, of sector-specific energy consumption on economic growth. This study is interested primarily in the conditions of uncertainty caused by the COVID-19 pandemic and the Russo-Ukrainian War, to enable the EU and each member state to take effective energy policy measures to ensure their energy security.

Suggested Citation

  • Georgeta Soava & Anca Mehedintu, 2023. "Final Energy Consumption—Growth Nexus in Romania Versus the European Union: A Sectoral Approach Using Neural Network," Energies, MDPI, vol. 16(2), pages 1-34, January.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:2:p:871-:d:1033262
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/2/871/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/2/871/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guerola-Navarro, Vicente & Gil-Gomez, Hermenegildo & Oltra-Badenes, Raul & Sendra-García, Javier, 2021. "Customer relationship management and its impact on innovation: A literature review," Journal of Business Research, Elsevier, vol. 129(C), pages 83-87.
    2. Chen, Yulong & Wang, Zheng & Zhong, Zhangqi, 2019. "CO2 emissions, economic growth, renewable and non-renewable energy production and foreign trade in China," Renewable Energy, Elsevier, vol. 131(C), pages 208-216.
    3. Seyed Reza Mirnezami & Sajad Rajabi, 2021. "Changing Primary Energy Consumption Due to COVID-19: The Study 20 European Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 615-631.
    4. Nepal, Rabindra & Paija, Nirash, 2019. "Energy security, electricity, population and economic growth: The case of a developing South Asian resource-rich economy," Energy Policy, Elsevier, vol. 132(C), pages 771-781.
    5. Magazzino, Cosimo & Schneider, Nicolas, 2020. "The Causal Relationship between Primary Energy Consumption and Economic Growth in Israel: A Multivariate Approach," International Review of Environmental and Resource Economics, now publishers, vol. 14(4), pages 417-491, December.
    6. Shahbaz, Muhammad & Raghutla, Chandrashekar & Chittedi, Krishna Reddy & Jiao, Zhilun & Vo, Xuan Vinh, 2020. "The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index," Energy, Elsevier, vol. 207(C).
    7. Leach, Melissa & MacGregor, Hayley & Scoones, Ian & Wilkinson, Annie, 2021. "Post-pandemic transformations: How and why COVID-19 requires us to rethink development," World Development, Elsevier, vol. 138(C).
    8. Destek, Mehmet & Sinha, Avik, 2020. "Renewable, non-renewable energy consumption, economic growth, trade openness and ecological footprint: Evidence from organisation for economic Co-operation and development countries," MPRA Paper 104246, University Library of Munich, Germany, revised 2020.
    9. Gozgor, Giray & Lau, Chi Keung Marco & Lu, Zhou, 2018. "Energy consumption and economic growth: New evidence from the OECD countries," Energy, Elsevier, vol. 153(C), pages 27-34.
    10. Adekoya, Oluwasegun B. & Ogunnusi, Timilehin P. & Oliyide, Johnson A., 2021. "Sector-by-sector non-renewable energy consumption shocks and manufacturing performance in the U.S.: Analysis of the asymmetric issue with nonlinear ARDL and the role of structural breaks," Energy, Elsevier, vol. 222(C).
    11. Inês, Campos & Guilherme, Pontes Luz & Esther, Marín-González & Swantje, Gährs & Stephen, Hall & Lars, Holstenkamp, 2020. "Regulatory challenges and opportunities for collective renewable energy prosumers in the EU," Energy Policy, Elsevier, vol. 138(C).
    12. Llanos, Cristian & Kristjanpoller, Werner & Michell, Kevin & Minutolo, Marcel C., 2022. "Causal treatment effects in time series: CO2 emissions and energy consumption effect on GDP," Energy, Elsevier, vol. 249(C).
    13. Mounir Ben Mbarek & Kais Saidi & Mohammad Mafizur Rahman, 2018. "Renewable and non-renewable energy consumption, environmental degradation and economic growth in Tunisia," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(3), pages 1105-1119, May.
    14. Adolfsen, Jakob Feveile & Kuik, Friderike & Schuler, Tobias & Lis, Eliza, 2022. "The impact of the war in Ukraine on euro area energy markets," Economic Bulletin Boxes, European Central Bank, vol. 4.
    15. Aydin, Celil & Esen, Ömer, 2018. "Does the level of energy intensity matter in the effect of energy consumption on the growth of transition economies? Evidence from dynamic panel threshold analysis," Energy Economics, Elsevier, vol. 69(C), pages 185-195.
    16. Belaïd, Fateh & Zrelli, Maha Harbaoui, 2019. "Renewable and non-renewable electricity consumption, environmental degradation and economic development: Evidence from Mediterranean countries," Energy Policy, Elsevier, vol. 133(C).
    17. Burcak Polat, 2021. "The impact of renewable and nonrenewable energy consumption on economic growth: a dynamic panel data approach," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 28(5), pages 592-603, September.
    18. Jiang, Peng & Fan, Yee Van & Klemeš, Jiří Jaromír, 2021. "Impacts of COVID-19 on energy demand and consumption: Challenges, lessons and emerging opportunities," Applied Energy, Elsevier, vol. 285(C).
    19. Halbrügge, Stephanie & Schott, Paul & Weibelzahl, Martin & Buhl, Hans Ulrich & Fridgen, Gilbert & Schöpf, Michael, 2021. "How did the German and other European electricity systems react to the COVID-19 pandemic?," Applied Energy, Elsevier, vol. 285(C).
    20. Kangyin Dong & Xiucheng Dong & Qingzhe Jiang, 2020. "How renewable energy consumption lower global CO2 emissions? Evidence from countries with different income levels," The World Economy, Wiley Blackwell, vol. 43(6), pages 1665-1698, June.
    21. Laura Canale & Anna Rita Di Fazio & Mario Russo & Andrea Frattolillo & Marco Dell’Isola, 2021. "An Overview on Functional Integration of Hybrid Renewable Energy Systems in Multi-Energy Buildings," Energies, MDPI, vol. 14(4), pages 1-33, February.
    22. Das, Narasingha & Bera, Pinki & Panda, Deepak, 2022. "Can economic development & environmental sustainability promote renewable energy consumption in India?? Findings from novel dynamic ARDL simulations approach," Renewable Energy, Elsevier, vol. 189(C), pages 221-230.
    23. Emirmahmutoglu, Furkan & Denaux, Zulal & Topcu, Mert, 2021. "Time-varying causality between renewable and non-renewable energy consumption and real output: Sectoral evidence from the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    24. Brini, Riadh, 2021. "Renewable and non-renewable electricity consumption, economic growth and climate change: Evidence from a panel of selected African countries," Energy, Elsevier, vol. 223(C).
    25. Lawal, Adedoyin Isola & Ozturk, Ilhan & Olanipekun, Ifedolapo O. & Asaleye, Abiola John, 2020. "Examining the linkages between electricity consumption and economic growth in African economies," Energy, Elsevier, vol. 208(C).
    26. Jamiu Adetola Odugbesan & Husam Rjoub, 2020. "Relationship Among Economic Growth, Energy Consumption, CO2 Emission, and Urbanization: Evidence From MINT Countries," SAGE Open, , vol. 10(2), pages 21582440209, April.
    27. Wang, Juan & Zhang, Sulan & Zhang, Qingjun, 2021. "The relationship of renewable energy consumption to financial development and economic growth in China," Renewable Energy, Elsevier, vol. 170(C), pages 897-904.
    28. Gina Ionela Butnaru & Alina-Petronela Haller & Raluca Irina Clipa & Mirela Ștefănică & Mihaela Ifrim, 2020. "The Nexus Between Convergence of Conventional and Renewable Energy Consumption in the Present European Union States. Explorative Study on Parametric and Semi-Parametric Methods," Energies, MDPI, vol. 13(20), pages 1-19, October.
    29. Mun Mun Ahmed & Koji Shimada, 2019. "The Effect of Renewable Energy Consumption on Sustainable Economic Development: Evidence from Emerging and Developing Economies," Energies, MDPI, vol. 12(15), pages 1-15, July.
    30. Apergis, Nicholas & Vouzavalis, Grigorios, 2018. "Asymmetric pass through of oil prices to gasoline prices: Evidence from a new country sample," Energy Policy, Elsevier, vol. 114(C), pages 519-528.
    31. Thai-Ha Le, Youngho Chang, and Donghyun Park, 2020. "Renewable and Nonrenewable Energy Consumption, Economic Growth, and Emissions: International Evidence," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 73-92.
    32. Rahman, Mohammad Mafizur & Velayutham, Eswaran, 2020. "Renewable and non-renewable energy consumption-economic growth nexus: New evidence from South Asia," Renewable Energy, Elsevier, vol. 147(P1), pages 399-408.
    33. Maneka Jayasinghe & Eliyathamby A. Selvanathan, 2021. "Energy consumption, tourism, economic growth and CO2 emissions nexus in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(2), pages 361-380, April.
    34. Bojan Obrenovic & Jianguo Du & Danijela Godinic & Diana Tsoy & Muhammad Aamir Shafique Khan & Ilimdorjon Jakhongirov, 2020. "Sustaining Enterprise Operations and Productivity during the COVID-19 Pandemic: “Enterprise Effectiveness and Sustainability Model”," Sustainability, MDPI, vol. 12(15), pages 1-27, July.
    35. Andhyka Tyaz Nugraha & Nor Hasni Osman, 2019. "CO2 Emissions, Economic Growth, Energy Consumption, and Household Expenditure for Indonesia: Evidence from Cointegration and Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 291-298.
    36. Khribich, Abir & Kacem, Rami H. & Dakhlaoui, Ahlem, 2021. "Causality nexus of renewable energy consumption and social development: Evidence from high-income countries," Renewable Energy, Elsevier, vol. 169(C), pages 14-22.
    37. Mihaela Sterpu & Georgeta Soava & Anca Mehedintu, 2018. "Impact of Economic Growth and Energy Consumption on Greenhouse Gas Emissions: Testing Environmental Curves Hypotheses on EU Countries," Sustainability, MDPI, vol. 10(9), pages 1-14, September.
    38. Saint Akadiri, Seyi & Alola, Andrew Adewale & Akadiri, Ada Chigozie & Alola, Uju Violet, 2019. "Renewable energy consumption in EU-28 countries: Policy toward pollution mitigation and economic sustainability," Energy Policy, Elsevier, vol. 132(C), pages 803-810.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei Wang & Kehui Wei & Oleksandr Kubatko & Vladyslav Piven & Yulija Chortok & Oleksandr Derykolenko, 2023. "Economic Growth and Sustainable Transition: Investigating Classical and Novel Factors in Developed Countries," Sustainability, MDPI, vol. 15(16), pages 1-15, August.
    2. Grzegorz Zimon, 2023. "Prospects for the Development of Transport in Poland during the Energy Crisis," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 56-60, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anna Komarnicka & Anna Murawska, 2021. "Comparison of Consumption and Renewable Sources of Energy in European Union Countries—Sectoral Indicators, Economic Conditions and Environmental Impacts," Energies, MDPI, vol. 14(12), pages 1-24, June.
    2. Geoffrey Ssebabi Mutumba & Tomson Odongo & Francis Nathan Okurut & Vincent Bagire & Livingstone Senyonga, 2022. "Renewable and non-renewable energy consumption and economic growth in Uganda," SN Business & Economics, Springer, vol. 2(7), pages 1-28, July.
    3. Adedoyin Isola Lawal, 2023. "The Nexus between Economic Growth, Energy Consumption, Agricultural Output, and CO 2 in Africa: Evidence from Frequency Domain Estimates," Energies, MDPI, vol. 16(3), pages 1-27, January.
    4. Djellouli, Nassima & Abdelli, Latifa & Elheddad, Mohamed & Ahmed, Rizwan & Mahmood, Haider, 2022. "The effects of non-renewable energy, renewable energy, economic growth, and foreign direct investment on the sustainability of African countries," Renewable Energy, Elsevier, vol. 183(C), pages 676-686.
    5. Abdul Rehman & Rasim Ozcan & Waqar Badshah & Magdalena Radulescu & Ilhan Ozturk, 2021. "Symmetric and Asymmetric Impacts of Commercial Energy Distribution from Key Sources on Economic Progress in Pakistan," Sustainability, MDPI, vol. 13(22), pages 1-22, November.
    6. Hashemizadeh, Ali & Bui, Quocviet & Kongbuamai, Nattapan, 2021. "Unpacking the role of public debt in renewable energy consumption: New insights from the emerging countries," Energy, Elsevier, vol. 224(C).
    7. Usman, Muhammad & Khalid, Khaizran & Mehdi, Muhammad Abuzar, 2021. "What determines environmental deficit in Asia? Embossing the role of renewable and non-renewable energy utilization," Renewable Energy, Elsevier, vol. 168(C), pages 1165-1176.
    8. Magazzino, Cosimo & Drago, Carlo & Schneider, Nicolas, 2023. "Evidence of supply security and sustainability challenges in Nigeria’s power sector," Utilities Policy, Elsevier, vol. 82(C).
    9. Shrestha, Anil & Mustafa, Andy Ali & Htike, Myo Myo & You, Vithyea & Kakinaka, Makoto, 2022. "Evolution of energy mix in emerging countries: Modern renewable energy, traditional renewable energy, and non-renewable energy," Renewable Energy, Elsevier, vol. 199(C), pages 419-432.
    10. Brini, Riadh, 2021. "Renewable and non-renewable electricity consumption, economic growth and climate change: Evidence from a panel of selected African countries," Energy, Elsevier, vol. 223(C).
    11. Anca Mehedintu & Georgeta Soava & Mihaela Sterpu & Eugenia Grecu, 2021. "Evolution and Forecasting of the Renewable Energy Consumption in the Frame of Sustainable Development: EU vs. Romania," Sustainability, MDPI, vol. 13(18), pages 1-30, September.
    12. Appiah-Otoo, Isaac & Chen, Xudong & Ampah, Jeffrey Dankwa, 2023. "Exploring the moderating role of foreign direct investment in the renewable energy and economic growth nexus: Evidence from West Africa," Energy, Elsevier, vol. 281(C).
    13. Georgeta Soava & Anca Mehedintu & Mihaela Sterpu & Eugenia Grecu, 2021. "The Impact of the COVID-19 Pandemic on Electricity Consumption and Economic Growth in Romania," Energies, MDPI, vol. 14(9), pages 1-25, April.
    14. Dabboussi, Moez & Abid, Mehdi, 2022. "A comparative study of sectoral renewable energy consumption and GDP in the U.S.: Evidence from a threshold approach," Renewable Energy, Elsevier, vol. 192(C), pages 705-715.
    15. Ziaei, Sayyed Mahdi, 2022. "The impacts of household social benefits, public expenditure on labour markets, and household financial assets on the renewable energy sector," Renewable Energy, Elsevier, vol. 181(C), pages 51-58.
    16. Miloš Žarković & Slobodan Lakić & Jasmina Ćetković & Bojan Pejović & Srdjan Redzepagic & Irena Vodenska & Radoje Vujadinović, 2022. "Effects of Renewable and Non-Renewable Energy Consumption, GHG, ICT on Sustainable Economic Growth: Evidence from Old and New EU Countries," Sustainability, MDPI, vol. 14(15), pages 1-27, August.
    17. Namahoro, J.P. & Nzabanita, J. & Wu, Q., 2021. "The impact of total and renewable energy consumption on economic growth in lower and middle- and upper-middle-income groups: Evidence from CS-DL and CCEMG analysis," Energy, Elsevier, vol. 237(C).
    18. Oryani, Bahareh & Koo, Yoonmo & Rezania, Shahabaldin & Shafiee, Afsaneh, 2021. "Investigating the asymmetric impact of energy consumption on reshaping future energy policy and economic growth in Iran using extended Cobb-Douglas production function," Energy, Elsevier, vol. 216(C).
    19. Lawal, Adedoyin Isola & Ozturk, Ilhan & Olanipekun, Ifedolapo O. & Asaleye, Abiola John, 2020. "Examining the linkages between electricity consumption and economic growth in African economies," Energy, Elsevier, vol. 208(C).
    20. Trinh, Hai Hong & Sharma, Gagan Deep & Tiwari, Aviral Kumar & Vo, Diem Thi Hong, 2022. "Examining the heterogeneity of financial development in the energy-environment nexus in the era of climate change: Novel evidence around the world," Energy Economics, Elsevier, vol. 116(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:2:p:871-:d:1033262. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.