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Decarbonization of the Romanian Economy: An ARDL and KRLS Approach of Ecological Footprint

Author

Listed:
  • Dan Ioan Topor

    (University “1 Decembrie 1918” of Alba Iulia, Romania)

  • Andreea Marin-Pantelescu

    (University “1 Decembrie 1918” of Alba Iulia, Romania)

  • Adela Socol

    (University “1 Decembrie 1918” of Alba Iulia, Romania)

  • Oana Raluca Ivan

    (University “1 Decembrie 1918” of Alba Iulia, Romania)

Abstract

The mechanisms developed at the European level through the Green Deal, to achieve the assumed decarbonization process, are facing major challenges to reach climate neutrality of the EU in a clean and circular economy by 2050. The purpose of this study is to investigate the hypothesis of the Environmental Kuznets Curve (EKC), based on the causal relationship between the ecological footprint as an indicator of sustainable development, and several variables, namely the gross domestic product per capita (GDP per capita) to capture the growth of the economy, globalisation (KOF Globalisation Index), and two environmental variables: fossil fuel energy and CO2 emissions. The study was developed for Romania, for the period 1990 to 2018, and used Autoregressive Distributed Lag (ARDL), dynamic ARDL, and Kernel Regularised Least Squares (KRLS) models. The results indicate the existence of a relationship between variables, both in the long and short term and, also coexistence between the U-shaped and inverted U-shaped EKC graphs, which confirm the empirical results found in the literature. The originality of the research consists in analysing the decarbonization of the Romanian economy by studying the influence of economic growth, globalisation, and energy from fossil fuels and CO2 emissions on the ecological footprint. From the perspective of public policies, the results highlight the need to configure appropriate instruments aimed at climate neutrality according to the objectives assumed by Romania through the Green Deal of the European Union.

Suggested Citation

  • Dan Ioan Topor & Andreea Marin-Pantelescu & Adela Socol & Oana Raluca Ivan, 2022. "Decarbonization of the Romanian Economy: An ARDL and KRLS Approach of Ecological Footprint," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 664-664, August.
    • Handle: RePEc:aes:amfeco:v:24:y:2022:i:61:p:664
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    References listed on IDEAS

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    Cited by:

    1. Stanislav Zabojník & Dusan Steinhauser & Viktoria Pestova, 2023. "EU Decarbonisation: Do EU Electricity Costs Harm Export Competitiveness?," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(63), pages 522-522, April.
    2. Jan Neugebauer & Marek Vokoun, 2024. "Economic and Political Dynamics of Globalization: A Review of Continuity and Change in Research Focus," International Journal of Economic Sciences, European Research Center, vol. 13(1), pages 30-57, May.

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    More about this item

    Keywords

    ARDL; decarbonization; ecological footprint; Environmental Kuznets Curve (EKC); GDP per capita; KOF Globalisation Index; KRLS.;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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