RENEWABLE ENERGY CONSUMPTION AND ECONOMIC GROWTH IN ROMANIA: EVIDENCE FROM A TIME-SERIES ECONOMETRIC ANALYSIS
RENEWABLE ENERGY CONSUMPTION AND ECONOMIC GROWTH IN ROMANIA: EVIDENCE FROM A TIME-SERIES ECONOMETRIC ANALYSIS
Ioana MEȘTER, Ancuța SZABO (RADU)
1 Department of Economics and Business, Doctoral School of Economics, Faculty of Economic Sciences, University of Oradea, Oradea, Romania
2 Faculty of Economic Sciences, University of Oradea, Oradea, Romania
imester@uoradea.ro
szabo.ancuta@student.uoradea.ro
Abstract: This study investigates the relationship between renewable energy consumption, economic growth and environmental factors in Romania over the period 1990–2022. Using annual data and a time-series econometric framework, the analysis examines the long-run and short-run dynamics between gross domestic product (GDP), renewable energy consumption, carbon dioxide (CO₂) emissions, energy use, gross capital formation and trade openness. The Autoregressive Distributed Lag model approach is employed to explore cointegration relationships among the variables. The empirical results reveal the existence of a long-run equilibrium relationship between economic growth and the selected explanatory variables. Renewable energy consumption is found to have a positive but statistically insignificant impact on economic growth, suggesting that its contribution remains limited in the Romanian context. At the same time, CO₂ emissions and energy use are positively associated with economic growth, indicating that Romania’s economic expansion is still partially dependent on conventional energy sources. Gross capital formation plays a significant role, particularly in the short run. The short-run dynamics confirm the adjustment towards long-run equilibrium, while causality analysis highlights the directional relationships between the variables. Overall, the findings emphasize the need to strengthen renewable energy policies to support sustainable economic growth.
Keywords: renewable energy; economic growth; CO2 emissions; ARDL; Romania; energy consumption.
JEL Classification: Q42; Q43; C32; O44.
