IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i16p5978-d1217210.html
   My bibliography  Save this article

A Comprehensive Analysis of Renewable Energy Based on Integrating Economic Cybernetics and the Autoregressive Distributed Lag Model—The Case of Romania

Author

Listed:
  • Armenia Androniceanu

    (Faculty of Administration and Public Management, Bucharest University of Economic Studies, 010374 Bucharest, Romania)

  • Irina Georgescu

    (Faculty of Economic Cybernetics, Statistics and Informatics, Department of Economic Informatics and Cybernetics, Bucharest University of Economic Studies, 0100374 Bucharest, Romania)

  • Ionuț Nica

    (Faculty of Economic Cybernetics, Statistics and Informatics, Department of Economic Informatics and Cybernetics, Bucharest University of Economic Studies, 0100374 Bucharest, Romania)

  • Nora Chiriță

    (Faculty of Economic Cybernetics, Statistics and Informatics, Department of Economic Informatics and Cybernetics, Bucharest University of Economic Studies, 0100374 Bucharest, Romania)

Abstract

Renewable energy represents a crucial resource in the efforts to combat climate change and reduce dependence on fossil fuels. In the past few decades, Romania has lessened its environmental footprint and played an important role in actions against climate change. In this research, the energy sector in Romania is analyzed from a holistic perspective as a complex adaptive system by using econometric tools. The purpose of the research is to analyze the Romanian energy sector as a cybernetic system and to study the long-run and the short-run causal impact of greenhouse gas emissions (GHG) and renewable energy (RE) on real GDP per capita. The causality among GHG, foreign direct investment (FDI), RE, and real GDP is checked by means of the autoregressive distributed lag model (ARDL). The time series are extracted from Eurostat and OECD databases and cover the period 2000-2021. The results reveal that (i) the variables are cointegrated according to the ARDL bounds test; (ii) in the long run, GHG negatively impacts GDP, RE positively impacts GDP; (iii) in the short run, GHG and RE positively impact GDP; (iv) the speed of adjustment is around 32%. The study holds significance both for scholars and the policy makers from the governmental environment agencies that should decide how to effectively reduce GHG emissions, promote renewable energy adoption, and design policies to facilitate the transition to a low-carbon economy.

Suggested Citation

  • Armenia Androniceanu & Irina Georgescu & Ionuț Nica & Nora Chiriță, 2023. "A Comprehensive Analysis of Renewable Energy Based on Integrating Economic Cybernetics and the Autoregressive Distributed Lag Model—The Case of Romania," Energies, MDPI, vol. 16(16), pages 1-28, August.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:16:p:5978-:d:1217210
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/16/5978/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/16/5978/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Venus Khim-Sen Liew, 2004. "Which Lag Length Selection Criteria Should We Employ?," Economics Bulletin, AccessEcon, vol. 3(33), pages 1-9.
    2. Emeka Nkoro & Aham Kelvin Uko, 2016. "Autoregressive Distributed Lag (ARDL) cointegration technique: application and interpretation," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 5(4), pages 1-3.
    3. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    4. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    5. Bento, Antonio M. & Garg, Teevrat & Kaffine, Daniel, 2018. "Emissions reductions or green booms? General equilibrium effects of a renewable portfolio standard," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 78-100.
    6. He, Lingyun & Liu, Rongyan & Zhong, Zhangqi & Wang, Deqing & Xia, Yufei, 2019. "Can green financial development promote renewable energy investment efficiency? A consideration of bank credit," Renewable Energy, Elsevier, vol. 143(C), pages 974-984.
    7. Suyi Kim, 2020. "The Effects of Foreign Direct Investment, Economic Growth, Industrial Structure, Renewable and Nuclear Energy, and Urbanization on Korean Greenhouse Gas Emissions," Sustainability, MDPI, vol. 12(4), pages 1-14, February.
    8. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    9. Ghouse, Ghulam & Khan, Saud Ahmed & Rehman, Atiq Ur, 2018. "ARDL model as a remedy for spurious regression: problems, performance and prospectus," MPRA Paper 83973, University Library of Munich, Germany.
    10. Angeliki N. Menegaki, 2019. "The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies," Economies, MDPI, vol. 7(4), pages 1-16, October.
    11. Armenia Androniceanu & Oana Matilda Sabie, 2022. "Overview of Green Energy as a Real Strategic Option for Sustainable Development," Energies, MDPI, vol. 15(22), pages 1-35, November.
    12. Armenia Androniceanu & Ioana-Catalina Enache & Elena-Narcisa Valter & Florin-Felix Raduica, 2023. "Increasing Energy Efficiency Based on the Kaizen Approach," Energies, MDPI, vol. 16(4), pages 1-24, February.
    13. Bulut, Umit & Muratoglu, Gonul, 2018. "Renewable energy in Turkey: Great potential, low but increasing utilization, and an empirical analysis on renewable energy-growth nexus," Energy Policy, Elsevier, vol. 123(C), pages 240-250.
    14. Joanna Krzywda & Dariusz Krzywda & Armenia Androniceanu, 2021. "Managing the Energy Transition through Discourse. The Case of Poland," Energies, MDPI, vol. 14(20), pages 1-23, October.
    15. Iuliana Matei, 2017. "Is there a Link between Renewable Energy Consumption and Economic Growth? A Dynamic Panel Investigation for the OECD Countries," Revue d'économie politique, Dalloz, vol. 127(6), pages 985-1012.
    16. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Does Renewable Energy Drive Sustainable Economic Growth? Multivariate Panel Data Evidence for EU-28 Countries," Energies, MDPI, vol. 10(3), pages 1-21, March.
    17. Ionuț NICA & Ștefan IONESCU, 2020. "Business process modeling. Using Unified Modeling Language to streamline the design of the TO-BE system within a company," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(625), W), pages 89-106, Winter.
    18. Ştefan Dragoş Cîrstea & Claudia Steluţa Martiş & Andreea Cîrstea & Anca Constantinescu-Dobra & Melinda Timea Fülöp, 2018. "Current Situation and Future Perspectives of the Romanian Renewable Energy," Energies, MDPI, vol. 11(12), pages 1-22, November.
    19. Mihaela Simionescu & Wadim Strielkowski & Manuela Tvaronavičienė, 2020. "Renewable Energy in Final Energy Consumption and Income in the EU-28 Countries," Energies, MDPI, vol. 13(9), pages 1-18, May.
    20. Martinez-Zarzoso, Inmaculada & Bengochea-Morancho, Aurelia, 2004. "Pooled mean group estimation of an environmental Kuznets curve for CO2," Economics Letters, Elsevier, vol. 82(1), pages 121-126, January.
    21. Nestor Shpak & Solomiya Ohinok & Ihor Kulyniak & W³odzimierz Sroka & Armenia Androniceanu, 2022. "Macroeconomic Indicators and CO2 Emissions in the EU Region," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 817-817, August.
    22. Simona Gutiu, 2021. "Legal Framework For Developing Renewable Projects In Romania Until 2030. A Real Estate Legal Perspective," Perspectives of Law and Public Administration, Societatea de Stiinte Juridice si Administrative (Society of Juridical and Administrative Sciences), vol. 10(3), pages 340-346, December.
    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. Ionuț Nica & Irina Georgescu & Camelia Delcea & Nora Chiriță, 2023. "Toward Sustainable Development: Assessing the Effects of Financial Contagion on Human Well-Being in Romania," Risks, MDPI, vol. 11(11), pages 1-32, November.
    2. Ionuț Nica & Ștefan Ionescu & Camelia Delcea & Nora Chiriță, 2024. "Quantitative Modeling of Financial Contagion: Unraveling Market Dynamics and Bubble Detection Mechanisms," Risks, MDPI, vol. 12(2), pages 1-42, February.
    3. Teodora Mîndra & Oana Chenaru & Radu Dobrescu & Lucian Toma, 2024. "Modular Microgrid Technology with a Single Development Environment Per Life Cycle," Energies, MDPI, vol. 17(19), pages 1-19, October.
    4. Oana Vlăduţ & George Eduard Grigore & Dumitru Alexandru Bodislav & Gabriel Ilie Staicu & Raluca Iuliana Georgescu, 2024. "Analysing the Connection between Economic Growth, Conventional Energy, and Renewable Energy: A Comparative Analysis of the Caspian Countries," Energies, MDPI, vol. 17(1), pages 1-30, January.
    5. Idroes, Ghalieb Mutig & Hardi, Irsan & Hilal, Iin Shabrina & Utami, Resty Tamara & Noviandy, Teuku Rizky & Idroes, Rinaldi, 2024. "Economic growth and environmental impact: Assessing the role of geothermal energy in developing and developed countries," Innovation and Green Development, Elsevier, vol. 3(3).
    6. Irina Georgescu & Ionuț Nica & Camelia Delcea & Cristian Ciurea & Nora Chiriță, 2024. "A Cybernetics Approach and Autoregressive Distributed Lag Econometric Exploration of Romania’s Circular Economy," Sustainability, MDPI, vol. 16(18), pages 1-26, September.
    7. Ionuț Nica & Irina Georgescu & Nora Chiriță, 2024. "Simulation and Modelling as Catalysts for Renewable Energy: A Bibliometric Analysis of Global Research Trends," Energies, MDPI, vol. 17(13), pages 1-32, June.
    8. Vlad STOICESCU & Catalin VRABIE & Teodora BITOIU, 2023. "Energy ecosystems layered over hydrogen valleys for sustainable smart communities. Strategic framework for the Green Deal Industrial Plan implementation in Romania," Smart Cities International Conference (SCIC) Proceedings, Smart-EDU Hub, Faculty of Public Administration, National University of Political Studies & Public Administration, vol. 11, pages 443-498, June.
    9. Irina Georgescu & Ionuț Nica, 2024. "Evaluating the Determinants of Deforestation in Romania: Empirical Evidence from an Autoregressive Distributed Lag Model and the Bayer–Hanck Cointegration Approach," Sustainability, MDPI, vol. 16(13), pages 1-28, June.

    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. Carmen van der Merwe & Martin de Wit, 2021. "An In-Depth Investigation into the Relationship Between Municipal Solid Waste Generation and Economic Growth in the City of Cape Town," Working Papers 07/2021, Stellenbosch University, Department of Economics, revised 2021.
    2. Piaggio, Matías & Padilla, Emilio, 2012. "CO2 emissions and economic activity: Heterogeneity across countries and non-stationary series," Energy Policy, Elsevier, vol. 46(C), pages 370-381.
    3. Anh-Tu Nguyen & Shih-Hao Lu & Phuc Thanh Thien Nguyen, 2021. "Validating and Forecasting Carbon Emissions in the Framework of the Environmental Kuznets Curve: The Case of Vietnam," Energies, MDPI, vol. 14(11), pages 1-38, May.
    4. Brice, M'bakob Gilles, 2024. "Gender disparity and enterprise expansion in the impact and transmission channels of ICT on unemployment in developing countries," Technology in Society, Elsevier, vol. 77(C).
    5. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2015. "Economic growth with coal, oil and renewable energy consumption in China: Prospects for fuel substitution," Economic Modelling, Elsevier, vol. 44(C), pages 104-115.
    6. Zhang, Yu & Zhang, Sufang, 2018. "The impacts of GDP, trade structure, exchange rate and FDI inflows on China's carbon emissions," Energy Policy, Elsevier, vol. 120(C), pages 347-353.
    7. Kanjilal, Kakali & Ghosh, Sajal, 2013. "Environmental Kuznet’s curve for India: Evidence from tests for cointegration with unknown structuralbreaks," Energy Policy, Elsevier, vol. 56(C), pages 509-515.
    8. Sohail Abbas & Shazia Kousar & Amber Pervaiz, 2021. "Effects of energy consumption and ecological footprint on CO2 emissions: an empirical evidence from Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13364-13381, September.
    9. Ghosh, Sajal, 2010. "Examining carbon emissions economic growth nexus for India: A multivariate cointegration approach," Energy Policy, Elsevier, vol. 38(6), pages 3008-3014, June.
    10. Özlem Karadağ Albayrak & Samet Topal & Serhat Çamkaya, 2022. "The Impact of Economic Growth, Renewable Energy, Non-renewable Energy and Trade Openness on the Ecological Footprint and Forecasting in Turkiye: an Case of the ARDL and NMGM Forecasting Model," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 10(2), pages 139-154, December.
    11. Iorember, Paul Terhemba & Usman, Ojonugwa & Jelilov, Gylych, 2019. "Asymmetric Effects of Renewable Energy Consumption, Trade Openness and Economic Growth on Environmental Quality in Nigeria and South Africa," MPRA Paper 96333, University Library of Munich, Germany, revised 2019.
    12. Mary O. Agboola & Festus V. Bekun, 2019. "Does Agricultural Value Added Induce Environmental Degradation? Empirical Evidence from an Agrarian Country," CEREDEC Working Papers 19/040, Centre de Recherche pour le Développement Economique (CEREDEC).
    13. Ozturk, Ilhan & Acaravci, Ali, 2010. "CO2 emissions, energy consumption and economic growth in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 3220-3225, December.
    14. Armenia Androniceanu & Irina Georgescu, 2023. "The Impact of CO 2 Emissions and Energy Consumption on Economic Growth: A Panel Data Analysis," Energies, MDPI, vol. 16(3), pages 1-17, January.
    15. Karaaslan, Abdulkerim & Çamkaya, Serhat, 2022. "The relationship between CO2 emissions, economic growth, health expenditure, and renewable and non-renewable energy consumption: Empirical evidence from Turkey," Renewable Energy, Elsevier, vol. 190(C), pages 457-466.
    16. Ruba Abdullah Aljarallah, 2020. "The Economic Impacts of Natural Resource Dependency in Gulf Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 36-52.
    17. Muhammad, Shahbaz & Lean, Hooi Hooi & Muhammad, Shahbaz Shabbir, 2011. "Environmental Kuznets Curve and the role of energy consumption in Pakistan," MPRA Paper 34929, University Library of Munich, Germany, revised 22 Nov 2011.
    18. Marques, António Cardoso & Junqueira, Thibaut Manuel, 2022. "European energy transition: Decomposing the performance of nuclear power," Energy, Elsevier, vol. 245(C).
    19. Sonal Devesh & Abdullah M. Asrul Affendi, 2021. "Modelling the Impact of Oil Price on Food Imports: Case of Oman," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 113-120.
    20. Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.

    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:16:p:5978-:d:1217210. 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.