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The Macroeconomic Impact Of Legislative Regulations In The Renewable Energy Sector

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  • Ionescu Sas Mihaela

Abstract

This paper will analyze the impact of legislative regulations in the energy produced from renewable sources of energy prices on households and industrial energy market in the European and Romanian. Will be presented first European strategy on the promotion of renewable energy to achieve the target of 20% of EU energy production. Directive on renewable energy production has generated a number of changes in the energy market on the price to the consumer and the State aid administered by the European Commission. This Directive has led to increases in energy prices finals encouraged by various support schemes. Macroeconomic analysis will estimate the effects of increasing electricity prices due to legislative regulations of renewable energy on domestic and industrial consumers in the EU member countries. For this research the author appeals to applied economic literature on market price of renewable energy, namely the introduction of an additional cost for households and industrial consumers, cost generated by high levels of investment in renewable energy and encourage energy produced by different support schemes. The author will highlight the main issues induced by some EU countries have taken a number of measures to reduce or eliminate the additional cost and then nationally, based on the National Action Plan for Renewable Energy, will assess the effects the regulations in the field of energy they produce to market. On the one hand European Commission approves state aid for renewable energy production, on the other hand, the Commission brought all state aid for the high price of energy in energointensive industry. It will finally achieve some estimates on energy prices in 2020 in Romania. Maintaining the high cost of energy for industrial consumers leads to uncompetitive due to the high prices of the final product. Regarding the question of consumer households vulnerable due to higher electricity prices.

Suggested Citation

  • Ionescu Sas Mihaela, 2015. "The Macroeconomic Impact Of Legislative Regulations In The Renewable Energy Sector," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 202-213, July.
    • Handle: RePEc:ora:journl:v:1:y:2015:i:1:p:202-213
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    References listed on IDEAS

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    More about this item

    Keywords

    price; consumers of energy; renewable energy directive; the difference in price;
    All these keywords.

    JEL classification:

    • E - Macroeconomics and Monetary Economics

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