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Obtaining Economic Growth From Energy Consumption In Urban Areas

  • Corina Pîrlogea


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

  • Claudiu Cicea


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

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.

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Article provided by Research Centre in Public Administration and Public Services, Bucharest, Romania in its journal Theoretical and Empirical Researches in Urban Management.

Volume (Year): 6 (2011)
Issue (Month): 3 (August)
Pages: 73-83

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Handle: RePEc:rom:terumm:v:6:y:2011:i:3:p:73-83
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