The Interaction Between Renewable Energy Consumption and the Institutional Framework from a Circular Economy-Based Perspective
The European Green Deal describes the vision and strategic orientation of EU members of future public policies, which is designed to harmonize countries’ efforts to align national economies with the principles of the circular economy. Among the directions prescribed by the European Green Deal, we...
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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_3133.pdf |
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| Summary: | The European Green Deal describes the vision and strategic orientation of EU members of
future public policies, which is designed to harmonize countries’ efforts to align national
economies with the principles of the circular economy. Among the directions prescribed by
the European Green Deal, we find an increase of renewable energy (RE) consumption in
parallel with improving energy efficiency and reducing the energy sources that involve
significant negative environmental impact in the long run. Our study addressed the
association between RE consumption, management decision-making factor, policy landscape
addressing energy efficiency, and sustainability innovation capabilities, at a firm-level
analysis. For this purpose, we assess the causality between these variables, performing a time
series analysis on a sample that covers the period between 2011 and 2019. Regression models
are estimated with panel time series FMOLS (Fully Modified Ordinary Least Squares) and
DMOLS (Dynamic Modified Ordinary Least Squares) estimation methods. The results
underscore that the evolution of renewable energy consumption by firms depends on the
management decision, related both to the commitment of managers to sustainable strategies
and the effectiveness of governance processes. Nonetheless, our results emphasize the
essential role of the country’s institutional factor, which should ensure proper regulation,
effective enforcement mechanisms, and financial incentives that promote the RE usage.
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| ISSN: | 1582-9146 2247-9104 |