THE GDP INFLUENCE ON THE AMOUNT OF RENEWABLE ENERGIES PRODUCTION IN ROMANIA.

Abstract

Nowadays, energy has become an indispensable part in any human activity. Even so, two billion people i.e., one third of the world population, have no access to modern energy sources. The world's population is being expecting more from the third millennium and the key to a high standard of living is given by the accessibility to sources of clean energy at an affordable price. Energy has an impact on every aspect of modern life as it is in close connection with energy use per capita (which ensures a high level of productivity) and life expectancy. We cannot address phenomena such as economic growth, development and progress and to exclude directly an increase in energy demand. In addition, if we add two current realities of paramount importance, namely air pollution and fossil fuel depletion, then we can say with certainty that the production of renewable energy is the best "clean" and sustainable solution at our disposal. But we know for a fact that it is costly to meet the current level of demand for energy from unconventional sources, and by this we mean the initial investment because later on the maintenance costs are reduced and the resource used is free and inexhaustible. Therefore our work aims to analyze through an econometric model, the impact the Gross Domestic Product has on production of renewable energy. The conclusion we have reached at after developing this model is that there is a direct correlation between renewable energy and Gross Domestic Product. So, we demonstrated using a simple linear regression model that the Gross Domestic Product influence on the amount of renewable energy produced is significant both in the sample and the total population. In other words, Gross Domestic Product growth will stimulate the production of energy from non-polluting alternative sources which means less fossil fuel burned.

Keywords

• renewable energy, GDP, economic growth