Transition Trajectory: VAR Projections of Romania’s Shift to Renewable Energy

Pisică Andrei, Davidescu Adriana AnaMaria, AgafiȚei Marina-Diana (), BolboaȘă Maria-Bianca and Gheorghe Mihai
Additional contact information
Pisică Andrei: The Bucharest University of Economic Studies, Bucharest, Romania.
Davidescu Adriana AnaMaria: The Bucharest University of Economic Studies, Bucharest, Romania/National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania.
AgafiȚei Marina-Diana: The Bucharest University of Economic Studies, Bucharest, Romania/National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania.
BolboaȘă Maria-Bianca: The Bucharest University of Economic Studies, Bucharest, Romania/National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania.
Gheorghe Mihai: The Bucharest University of Economic Studies, Bucharest, Romania.

Journal of Social and Economic Statistics, 2024, vol. 13, issue 1, 19

Abstract: Romania, along with many other nations, must take urgent action to significantly reduce greenhouse gas emissions to effectively address climate change. Through an examination of Romania’s renewable energy potential and strategies for transitioning to a more sustainable energy system, this study employs a Vector Autoregressive (VAR) model to explore the complex dynamic interrelationships between various energy sources within Romania including solar power, hydropower, coal, and natural gas. The results indicate that increased production of renewable resources, particularly solar and hydroelectric energy, serves to diminish reliance on fossil fuels by negatively impacting thermal energy output. Impulse response functions reveal that short-term shocks to thermal energy production lead to temporary decreases in solar and nuclear energy generation, followed by a gradual stabilisation, while variance decomposition analysis underscores solar energy's pivotal role in influencing other energy sources. The findings highlight Romania’s ability to replace polluting sources with environmentally friendly alternatives, implying that policies aimed at diversifying the energy mix, investing in green infrastructure development, and fostering innovation across industries are fundamental. Such strategies not only enhance Romania's energy sustainability over the long term but also contribute to broader economic growth and environmental protection objectives.

Keywords: Renewable Energy Transition; Energy Mix Diversification; Vector Autoregressive (VAR) Model; Energy Policy Romania; Sustainable Development (search for similar items in EconPapers)
JEL-codes: C32 O13 P28 Q42 Q48 (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/jses-2024-0004 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:jsesro:v:13:y:2024:i:1:p:19:n:1001

DOI: 10.2478/jses-2024-0004

Access Statistics for this article

Journal of Social and Economic Statistics is currently edited by Erika Marin

More articles in Journal of Social and Economic Statistics from Sciendo
Bibliographic data for series maintained by Peter Golla ().