IDEAS home Printed from https://ideas.repec.org/a/rom/merase/v10y2025i3p632-648.html
   My bibliography  Save this article

Policy Uncertainty and Investment Dynamics in the Renewable Energy Sector: A Post-Pandemic Perspective from Romania

Author

Listed:
  • Mihai SANDU

    (Bucharest University of Economic Studies, Romania)

  • Mihai VRISCU

    (Bucharest University of Economic Studies, Romania)

  • Ahmed SHAKIR

    (Bucharest University of Economic Studies, Romania)

Abstract

This article investigates the influence of policy uncertainty on investment decisions in Romania’s renewable energy sector during the post-COVID-19 period. The analysis uses real data from 2018–2024 to explore the interplay between investment flows, regulatory instability, electricity market volatility, and alignment with EU-level green objectives. Econometric modelling of quarterly data reveals that unpredictable policy shifts—such as abrupt changes in support schemes or emergency price regulations—significantly dampened renewable energy investments in the short run. The results indicate that delayed support mechanisms and frequent legislative changes contributed to investor hesitation, capital relocation, and project delays in Romania’s renewable energy industry. Meanwhile, EU initiatives like the Green Deal and the Recovery and Resilience Facility appear to have moderated some negative impacts by underpinning investor confidence in the long-term decarbonisation trajectory. Based on these empirical findings, the article proposes policy recommendations to foster regulatory coherence and restore investment momentum in line with Romania’s 2030 decarbonisation objectives.

Suggested Citation

  • Mihai SANDU & Mihai VRISCU & Ahmed SHAKIR, 2025. "Policy Uncertainty and Investment Dynamics in the Renewable Energy Sector: A Post-Pandemic Perspective from Romania," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(3), pages 632-648, November.
    • Handle: RePEc:rom:merase:v:10:y:2025:i:3:p:632-648
    as

    Download full text from publisher

    File URL: https://mer.ase.ro/files/2025-3/10-3-8.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    Statistics

    Access and download statistics

    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:rom:merase:v:10:y:2025:i:3:p:632-648. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ciocoiu Nadia Carmen (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

    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.