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: Adriana Florina Popa, Valentin Burcă, Daniela Nicoleta Sahlian, Daniela Livia Trașcă
Format: Article
Language:English
Published: Editura ASE 2022-08-01
Series:Amfiteatru Economic
Subjects:
Online Access:https://www.amfiteatrueconomic.ro/temp/Article_3133.pdf
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author Adriana Florina Popa
Valentin Burcă
Daniela Nicoleta Sahlian
Daniela Livia Trașcă
author_facet Adriana Florina Popa
Valentin Burcă
Daniela Nicoleta Sahlian
Daniela Livia Trașcă
author_sort Adriana Florina Popa
collection DOAJ
description 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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spelling doaj-art-931ed59158b044fcb652dfbf2a332f1c2025-08-20T03:37:19ZengEditura ASEAmfiteatru Economic1582-91462247-91042022-08-012461648 66310.24818/EA/2022/61/648The Interaction Between Renewable Energy Consumption and the Institutional Framework from a Circular Economy-Based PerspectiveAdriana Florina Popa0https://orcid.org/0000-0002-9995-3893Valentin Burcă1https://orcid.org/0000-0003-3713-0629Daniela Nicoleta Sahlian2https://orcid.org/0000-0002-1881-6337Daniela Livia Trașcă3https://orcid.org/0000-0001-5752-2289Bucharest University of Economic Studies, Bucharest, RomaniaWest University of Timișoara, Timișoara, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaThe 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. https://www.amfiteatrueconomic.ro/temp/Article_3133.pdf: circular economyrenewable energyenergy efficiencyregulatory indicators for sustainable energyfully modified ordinary least squaresgeneralized method of moments
spellingShingle Adriana Florina Popa
Valentin Burcă
Daniela Nicoleta Sahlian
Daniela Livia Trașcă
The Interaction Between Renewable Energy Consumption and the Institutional Framework from a Circular Economy-Based Perspective
Amfiteatru Economic
: circular economy
renewable energy
energy efficiency
regulatory indicators for sustainable energy
fully modified ordinary least squares
generalized method of moments
title The Interaction Between Renewable Energy Consumption and the Institutional Framework from a Circular Economy-Based Perspective
title_full The Interaction Between Renewable Energy Consumption and the Institutional Framework from a Circular Economy-Based Perspective
title_fullStr The Interaction Between Renewable Energy Consumption and the Institutional Framework from a Circular Economy-Based Perspective
title_full_unstemmed The Interaction Between Renewable Energy Consumption and the Institutional Framework from a Circular Economy-Based Perspective
title_short The Interaction Between Renewable Energy Consumption and the Institutional Framework from a Circular Economy-Based Perspective
title_sort interaction between renewable energy consumption and the institutional framework from a circular economy based perspective
topic : circular economy
renewable energy
energy efficiency
regulatory indicators for sustainable energy
fully modified ordinary least squares
generalized method of moments
url https://www.amfiteatrueconomic.ro/temp/Article_3133.pdf
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