Improving Efficiency of the Romanian Energy Sector by Supporting Investments in Renewable Energy Use

Improving Efficiency of the Romanian Energy Sector by Supporting Investments in Renewable Energy Use

Carmen Mihaela Boteanu (The Bucharest University of Economic Studies, Bucharest, Romania)
Copyright: © 2018 |Pages: 13
DOI: 10.4018/IJIDE.2018070104

Abstract

This article describes how Romania has implemented a generous program for green energy development, which attracted so many investments that the target set for 2020 must have reached. This article presents a model for estimating the effect of governmental decisions on investments in renewable energy in Romania. This also reflects their influence on the state budget revenue generated from renewable energy producers and consumers, both households and industrial consumers. Results can be useful for the public sector involved in the production of green energy.
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Introduction

The realities brought into light by the present epoch determined the rise of significant concerns from the economical theoreticians and practitioners side in order to increase the companies’ efficiency (Ellabban et al., 2014; Chen & Chen, 2011). They have also generated the occurrence of specialized organisations primarily dealing with managing resources and limiting their consumption correlated with human society needs (Knight & Schor, 2014; Guerrero-Liquet et al., 2016). Their main focusing direction is towards finding out alternative, durable solutions, so as to ensure that the generations to come have at least equal chances of existence, knowledge and development. The classical approach of organizations, without a complex tactic on long and medium term cannot confer them any chance in expanding the business, the main issue being now the survival of the fittest (Zhao & Guo, 2015; Dong et al., 2016).

Efficiency is, in the current economic environment, a main goal, for the public administration as well, since the economic crisis manifested worldwide, has challenged many states, including Romania, to access loans from the international financial institutions (e.g. the International Monetary Fund, World Bank group, European Bank for Reconstruction and Development, European Investment Bank, etc.) and the refunding of thereof is regulated by financing agreements, which involve reorganization and streamlining of certain economic sectors and the national government (Cioca et al., 2015; Haara & Marinescu, 2011; Cicea et al., 2014; Vandevyvere & Stremke, 2012).

Economical efficiency must represent a basis component of the entire economical activity due to the limited character of the resources which have to be wisely managed so as to ensure the economical progress and the improvement of mankind living standards (Cioca et al., 2015). Within a market economy context, the economical efficiency must be viewed both from the micro and macro economical point of view. The economical efficiency, especially the investment and fixed capital, have a foresight character, fact that guarantees a particular importance in taking economical decisions. Decisions shall be taken based on the existence of several project variants, creating the possibility of choosing the most efficient one (Sarkar & Singh, 2010).

The display of efficiency in the economical field may take different shapes, as follows: the output increase per man-shift; reducing the consumption of raw materials, fuel and consumables, reducing the freight costs, increase profitability of the enterprises (Cistelecan, 2002). Thus, the efficiency is expressed upon case by its multitude of forms and partial aspects, but especially through their reunite series.

In applying the pattern, it is necessary to make use of the predictions regarding the production of the department which is to be technologized, in accordance with the production estimates of the other company departments. At the same time, there are used the studies regarding the evolution of the requirements of the domestic and foreign market, the analysis of the degree of production capacities utilization, the development strategy of the company. To these there are added the previsions regarding the rate of inflation, the exchange rate of the reference currency (euro), as well as the directions of evolution settled by the development strategy of the Romanian green energy industry.

The literature regarding energy efficiency highlights a complex and varied set of arguments, but with a distinct lack of consensus to date, even on some basic theoretical principles (Filippinia et al., 2014; Cardu & Baica, 1999; Popescu et al., 2012; Gómez-Calvet et al., 2014). In this respect, the link between the uses of strategic planning, the measurement of management performance, the improvement of results obtained at the level of an organization with relevant experience in a particular sector and impact on that sector should be a topic of great interest to the public-sector management (Karydis, 2013; González & Moreno, 2015; Andreoni & Galmarini, 2012; Hufen, 2017).

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