Decarbonization of the Romanian Economy: An ARDL and KRLS Approach of Ecological Footprint
The mechanisms developed at the European level through the Green Deal, to achieve the assumed decarbonization process, are facing major challenges to reach climate neutrality of the EU in a clean and circular economy by 2050. The purpose of this study is to investigate the hypothesis of the Envir...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2022-08-01
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| Series: | Amfiteatru Economic |
| Subjects: | |
| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3134.pdf |
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| Summary: | The mechanisms developed at the European level through the Green Deal, to achieve the
assumed decarbonization process, are facing major challenges to reach climate neutrality of
the EU in a clean and circular economy by 2050. The purpose of this study is to investigate
the hypothesis of the Environmental Kuznets Curve (EKC), based on the causal relationship
between the ecological footprint as an indicator of sustainable development, and several
variables, namely the gross domestic product per capita (GDP per capita) to capture the
growth of the economy, globalisation (KOF Globalisation Index), and two environmental
variables: fossil fuel energy and CO2 emissions. The study was developed for Romania, for
the period 1990 to 2018, and used Autoregressive Distributed Lag (ARDL), dynamic ARDL,
and Kernel Regularised Least Squares (KRLS) models.
The results indicate the existence of a relationship between variables, both in the long and
short term and, also coexistence between the U-shaped and inverted U-shaped EKC graphs,
which confirm the empirical results found in the literature. The originality of the research
consists in analysing the decarbonization of the Romanian economy by studying the
influence of economic growth, globalisation, and energy from fossil fuels and CO2 emissions
on the ecological footprint. From the perspective of public policies, the results highlight the
need to configure appropriate instruments aimed at climate neutrality according to the
objectives assumed by Romania through the Green Deal of the European Union |
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| ISSN: | 1582-9146 2247-9104 |