Analysis of renewable and nonrenewable energy consumption, real GDP and CO2 emissions: A structural VAR approach in Romania

Muhammad Shahbaz, Muhammad Zeshan and Aviral Tiwari

MPRA Paper from University Library of Munich, Germany

Abstract: Impulse responses of our structural VAR portray a positive correlation between the real GDP of Romania and energy consumption. The present study employs the annual data covering the period 1980-2008, and brings to light the factors playing important role in satisfying the energy requirements, its economic and social implications. Any short-run rise in energy requirements is contented with the help of nonrenewable energy consumption, for renewable energy is not so common in Romania. In addition, high installation cost and the ignorance about our environmental responsibilities etc. might be other possible factors for this limited use of renewable energy. It also identifies a strong positive correlation between the nonrenewable energy consumption and the CO2 emissions; resultantly, CO2 piles on in the ecosystem as the nonrenewable energy consumption boosts up. This exaggeration of the CO2 emissions ever time paves some way for the renewable energy which appears to play a minor role at this stage. Impulse responses represent some weak substitution between the nonrenewable energy consumption with the renewable energy consumption, which lowers carbon emissions and communicates some positive message.

Keywords: renewable and nonrenewable energy consumption; real GDP; CO2 emissions (search for similar items in EconPapers)
JEL-codes: P28 (search for similar items in EconPapers)
Date: 2011-10-02, Revised 2011-10-10
New Economics Papers: this item is included in nep-cis, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Analysis of renewable and nonrenewable energy consumption, real GDP and CO2 emissions: A structural VAR approach in Romania (2015)
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