1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Decarbonising Romania’s economy

Romania’s clean energy transition needs to accelerate for the country to decarbonise its economy by mid-century. Following an impressive decline from the early 1990s, emissions of greenhouse gases have stopped falling in recent years. Fossil fuel dependence, an increasing and ageing vehicle fleet and poorly insulated buildings increase energy use and carbon intensity. Moving away from fossil fuels in Romania calls primarily for more renewables; shifting to electricity in transport and buildings; substantial energy savings; and improved transport systems. This paper identifies policies that would help bring about these changes cost effectively, while minimising the socio-economic impact of the transition and contributing to improving people’s quality of life. The policy package should include institutional reforms and public investment, regulatory changes, financial support and consistent price signals to encourage private abatement actions. Measures to alleviate the impact of the net-zero transition on vulnerable communities and to adapt to climate change are also required.

English

Keywords: clean energy transition, climate policy, energy taxes and subsidies, sustainable transport, just transition, carbon pricing, environment, Romania, energy efficient buildings
JEL: Q32: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation / Exhaustible Resources and Economic Development; R48: Urban, Rural, Regional, Real Estate, and Transportation Economics / Transportation Economics / Transportation Economics: Government Pricing and Policy; Q48: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy: Government Policy; O13: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products; R41: Urban, Rural, Regional, Real Estate, and Transportation Economics / Transportation Economics / Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; Q42: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Alternative Energy Sources; R11: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; H30: Public Economics / Fiscal Policies and Behavior of Economic Agents / Fiscal Policies and Behavior of Economic Agents: General; O18: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure; Q41: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy: Demand and Supply; Prices; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; Q43: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy and the Macroeconomy; H23: Public Economics / Taxation, Subsidies, and Revenue / Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
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