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Obtaining Economic Growth From Energy Consumption In Urban Areas

Author

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  • Corina Pîrlogea

    () (Academy of Economic Studies, Piata Romana 6, Bucharest, Romania)

  • Claudiu Cicea

    () (Academy of Economic Studies, Piata Romana 6, Bucharest, Romania)

Abstract

This study seeks to determine if, in Romania, a relation in the short and / or long run between economic growth and energy consumption by fuel can be established. To this end, the authors used time series for the period 1965-2007 over which a set of tests were realized: a test to verify the presence of a unit root in the series, cointegration test and causality test. Thus, the Augmented Dickey Fuller test was used to see whether or not the series are stationary, Engle-Granger method to study cointegration (indicating the relationships formed on long term) and Granger test to determine short run relationships and their direction. The results tell us that there is not even a bidirectional relationship between real GDP and energy consumption by fuel in per capita toe values, but that there are one-way causal relationships. Between economic growth and consumption of energy from hydropower, there is a relation established only on long run; this result influences in choosing other renewable energy sources too for consumption, if they can sustain economic growth and the overall energy consumption needs. In the same time, renewable energy may contribute together with sustainable transport to sustainable urban planning. For cities to become along with poles of growth, urban ecosystems, it is necessary to reduce the effects of climate changes. One way to rethink the urban structure and planning is to take into account renewables for these areas hungry for energy.

Suggested Citation

  • Corina Pîrlogea & Claudiu Cicea, 2011. "Obtaining Economic Growth From Energy Consumption In Urban Areas," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 6(3), pages 73-83, August.
  • Handle: RePEc:rom:terumm:v:6:y:2011:i:3:p:73-83
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Andreea ZAMFIR, 2012. "Implementing Regional Renewable Energy Projects Through Public-Private Partnerships," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 2(3), pages 77-84, September.
    2. Andreea ZAMFIR & Ilinca HOTARAN, 2011. "Public-Private Partnership for Regional Development of Renewable Energy," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 209-213.
    3. Andreea Zamfir, 2012. "Development Of Regional Renewable Energy Projects In Romania Through Public-Private Partnerships," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, pages 778-784.
    4. Zamfir, Andreea & Colesca, Sofia Elena & Corbos, Razvan-Andrei, 2016. "Public policies to support the development of renewable energy in Romania: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 87-106.
    5. Nicholas Apergisu & Dan Danuletiu, 2012. "Energy Consumption and Growth in Romania: Evidence from a Panel Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, pages 348-356.
    6. Andreea ZAMFIR, 2014. "Developing URBAN RENEWABLE ENERGY PROJECTS: OPPORTUNITIES AND CHALLENGES FOR ROMANIA," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, pages 52-64.

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