Promoting Renewable Energy â A Local Solution to
Zamfir, Andreea, and Ruxandra-Irina Popescu. “Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions.” In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011. ISBN 978-80-7368-963-6 http://conference.osu.eu/globalization/publ2011/379-387_Zamfir-Popescu.pdf. Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions Andreea Zamfir, Ruxandra-Irina Popescu Andreea Zamfir The Bucharest Academy of Economic Studies, Bucharest, Romania E-mail: [email protected] Ruxandra-Irina Popescu The Bucharest Academy of Economic Studies, Bucharest, Romania E-mail: [email protected] Abstract Nowadays cities and regions are "engines of economic development", with many environmental challenges to face. Today, may be more than ever, there is a need for competitiveness of cities and regions, and this cannot be achieved without taking into account the global dimension of the environmental problems. Therefore, the aim of this study is to investigate the issue of promoting renewable energy, as a possible local solution to global environmental problems of competitive cities and regions. First, some global environmental problems and success factors of competitive cities and regions are revealed, and second, some measures and actions for promoting renewable energy in Romania's development regions are suggested. The findings of this study reveal that renewable energy plays a major role among the success factors of competitive cities and regions, which may be encouraged to become sustainable, green cities and regions. In addition, the study has revealed that there is a need for a strong partnership between the local stakeholders in order to develop competitive green cities, and also for actions or programs that may promote and/or support the use of renewable energy for the development of cities and regions in Romania. The results of this study may be used for upcoming research in the area of implementing renewable energy projects for the development of competitive cities and regions in a world of globalization. Key words: globalization, environment, competitive cities, competitive regions, renewable energy Introduction Recently, the important role of cities in regional development has been more and more recognized at the global level. Cities provide a wide range of services to residents and businesses, create jobs, and stimulate research and development within and outside the economic sector. However, these functions are not limited to the administrative boundaries of cities, but also create benefits for the whole region. A modern city is truly successful only if it can convincingly demonstrate that it complies with environmental requirements, and thus renewable energy has become an important success factor of competitive cities and regions. Therefore, this study explores the issue of promoting renewable energy, which may be seen as a possible local solution to global environmental problems of competitive cities and regions. The research was conducted using a large variety of sources, such as statistics, research reports, as well as articles and books. The research question was answered by analyzing published sources, and by evaluating and interpreting the evidence. 379 Zamfir, Andreea, and Ruxandra-Irina Popescu. “Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions.” In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011. ISBN 978-80-7368-963-6 http://conference.osu.eu/globalization/publ2011/379-387_Zamfir-Popescu.pdf. Global environmental problems of competitive cities and regions Europe is an urban society, with many environmental challenges to face. All European regions are now interdependent in terms of guaranteeing energy supplies, creating stable economic conditions and effectively combatting climate change, taking into account the global dimension of the problem. All actors play an essential role in managing this change, at the local, regional, national and European level (Frant and Minica 2008: 2). Nowadays almost half of the world's population lives in cities and the consequences of the urban growth on the environment are significant. Generally, cities are prolific users of natural resources and large generators of waste (Popescu 2007: 165). In addition, cities are producing the highest amount of greenhouse gas emissions which are the main cause of global climate change. However, cities and regions have been leaders in addressing the issue of climate change. Many cities and regions adapt to the so-called "green economy" with programs related to recycling, waste prevention, green buildings, sustainable public transit, etc. Mayors and regional leaders around the world reduce their city's carbon footprint by renewing investment in public transit and enforcing land use provisions. Local authorities have mandated renewable energy requirements, recycling standards, clean energy service provision, and limits on urban sprawl. Nowadays cities are engines of economic development. Many industries and services are concentrated in cities because the inputs and product markets are widely available. Moreover, cities are places where people seek employment opportunities, and skills and knowledge are rapidly propagated, promoting citizens' mobility. However, the effects of globalization are profoundly affecting urban areas. Liberal trade policies, information and communication technologies and global financial markets facilitate the location of firms anywhere in the world. This increases competition among cities in order to attract businesses which will generate income for urban communities (Popescu 2007: 13). There is a need for competitiveness of the cities today more than ever, because they operate in a global market, competing with other urban settlements from around the world for investments, residents and tourists. Nevertheless, a city cannot be competitive unless it offers security, infrastructure and efficiency to its investors. Therefore, urban managers must include environmental problems within the management strategies and planning (Cobbett 2009). Figure 1illustrates the main success factors of competitive cities and regions, among which renewable energy plays a major role. Figure 1: Success factors of competitive cities and regions Sustainable development is possible only when it is based on the really environmentally conscious economic progress that respects natural limits, especially the amount of natural sources and the regeneration and neutralization capabilities of the biosphere (Pozeb and 380 Zamfir, Andreea, and Ruxandra-Irina Popescu. “Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions.” In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011. ISBN 978-80-7368-963-6 http://conference.osu.eu/globalization/publ2011/379-387_Zamfir-Popescu.pdf. Krope 2007). Therefore, the main research and development priorities are the development of renewable electricity, cost reduction and research on environment issues, as well as the need to adapt the electricity networks to new technological, economic, environmental and political realities (Kjaer 2006). The development of renewable energy sources is increasingly planned (Figure 2) at the regional and local level where needs and opportunities can more easily be taken into account, due to the decentralization of energy supply which enables local and regional factors to play a more important role (Applica and Ismeri Europa 2011: 10). Figure 2: Share of electricity from renewable energy sources in total energy consumption (%) Source: European Commission, 2010: 42 Romania has a significant share of renewable sources, amounting to 12% of gross inland consumption and 29% of electricity production (Eurostat 2009: 85). The proposed target for 2020 is 24% in final consumption. Although the target is ambitious, there is a significant potential in Romania for wind and biomass as well as for further hydro expansion, particularly smaller-scale hydro plants. 381 Zamfir, Andreea, and Ruxandra-Irina Popescu. “Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions.” In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011. ISBN 978-80-7368-963-6 http://conference.osu.eu/globalization/publ2011/379-387_Zamfir-Popescu.pdf. Renewable energies promise some strategic improvements in the security of supply, and the reduction of air pollution and greenhouse gas emissions. They also facilitate improvement in the economic and social prospects of rural and isolated regions in industrialized countries and help meet basic energy needs in developing countries (Commission of the European Communities 2006). Renewable energy and regional development in Romania Promoting renewable energy for Romania's regional development Various problems and requirements of the society and of the development of cities and regions may be solved by using environmental technologies. Urban managements in more prosperous advanced countries are rapidly and seriously transiting from conventional to sustainable energy technologies (Ingwe et al. 2009). The technological development in the urban development of cities may take into account the following prioritized areas: (1) sustainable management of the place and use of soil; (2) renewable and alternative energy; (3) sustainable management of water; (4) ecological materials; (5) comfort in the constructed environment; and (6) other resources and processes (Hernandez Moreno 2009: 126). Taking into account the requirements of sustainable urban management, renewable energy may be included into the branding strategy of competitive cities and regions. The concept of branding applied to countries, regions and cities began to be used in the mid-1990s in order to support these geographic areas in their fierce competition in the market. In this era of "super brands" it is not unusual to consider a country, region or city as a successful brand. We are facing today the most communicative society of all time. Countries, regions and cities are competing to attract tourists, investments, talents and credibility. In the past, it was quite easy to design a "natural" brand for different cities or regions, due to their history, customs and various industries in the area. However, globalization tends to erase the differences, technology is changing the way of life, and what was unique for decades or even centuries for the city or region does not define it anymore (Popescu and Corbos 2011: 137). Therefore, cities and regions may be encouraged to become sustainable green cities by using renewable energy, and thus green energy may become a part of the successful brand of competitive cities and regions. In order to develop sustainable green cities and regions there is a need for a strong partnership that involves local authorities, universities, local energy generators, and service organizations (Figure 3). Figure 3: Partnership for developing competitive green cities 382 Zamfir, Andreea, and Ruxandra-Irina Popescu. “Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions.” In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011. ISBN 978-80-7368-963-6 http://conference.osu.eu/globalization/publ2011/379-387_Zamfir-Popescu.pdf. Local authorities play an important role in improving the environment of cities and regions, and, along with other partners, may draft the guidelines for sustainable urban development and establish the appropriate forms of assistance. The partnership of urban stakeholders for creating green cities may lead to the revitalization of waterfront areas, development of integrated urban transport systems in order to support the accessibility and mobility of citizens, and provision of housing and settlements environmentally friendly, which use renewable energy. There are eight development regions in Romania (Figure 4) which has a high renewable energy potential, distributed in all its development regions. In terms of theoretical potential, biomass and biogas account for an overwhelming 65% of the total renewable energy sources potential (excluding large hydro plants) of around 135 TWh/year (cumulating both electric and thermal energy), wind and solar energy accounting for 17% and 13%, respectively. Small hydro plants (under 10 MW) and geothermal energy register a relatively low share in the total, with 4% and 1%, respectively (Roland Berger Strategy Consultants 2010, Iluţiu-Varvara et al. 2009). Taking into account the significant potential of renewable energy sources in Romania, it is reasonable to use it in order to develop Romanian cities and regions. Figure 4: Development regions in Romania Source: Ministry of Regional Development and Tourism 2010 There are some current technologies that may be applied to urban sustainable development, such as new-generation photovoltaic panels, systems of passive heating of water, wind energy, geothermal energy, mini-hydraulic energy, etc. (Hernandez Moreno 2009: 135). These technologies may be applied in households, places of work, offices and any building so as to ensure an efficient energy management in cities and regions. The creation of sustainable green cities may take into account urbanization and population growth, the risk of disasters and climate change, the role of the private sector and local economy, local cultural identity and heritage areas, green open spaces, area management of river basins, urban transportation and housing and settlements. In the future, the development of sustainable green cities may encourage a paradigm shift that leads to visionary, creative and inclusive urban management. As for now, any action or program that may promote and/or support the use of renewable energy for the development of cities and regions in Romania is very welcomed, because it may be a starting point for raising their competitiveness and transforming them into green cities and regions. 383 Zamfir, Andreea, and Ruxandra-Irina Popescu. “Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions.” In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011. ISBN 978-80-7368-963-6 http://conference.osu.eu/globalization/publ2011/379-387_Zamfir-Popescu.pdf. "Green House Program" for using renewable energy in Romanian cities and regions One program used to support the use of renewable energy in Romanian cities and regions is the "Green House Program", which started in 2010 as an initiative of the Ministry of the Environment and Forests. The purpose of the "Green House Program" is to improve air, water and soil quality by reducing the level of pollution caused by wood and fossil fuels used to produce thermal energy for heating and hot water. There are grants from the Environmental Fund for the installation of heating systems using renewable energy, including replacing or supplementing traditional heating systems. The program was highly promoted in mass-media and Internet, and some powerful visual symbols have been used in order to help the program to gain a positive image in people's minds (Figure 5). Figure 5: Symbols used to promote the "Green House Program" A higher degree of solar, wind or biomass use as sources for heating, cooling and electricity production could change the buildings' design concept. The architecture of the new or revamped buildings may take into account different new elements (solar panels, photovoltaic walls and roofs, wind generators, etc.) (Musatescu and Comanescu 2009: 198). The Environmental Fund budget was distributed to development regions depending on the number of inhabitants per region (Figure 6). Figure 6: Inhabitants per region in Romania (%) North-West 10% 13% 16% North-East 16% West Centre South-West 13% 9% 11% 12% South-East South Muntenia Bucharest-Ilfov Source: Authors' calculations based on data from the Ministry of the Environment and Forests 2010 384 Zamfir, Andreea, and Ruxandra-Irina Popescu. “Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions.” In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011. ISBN 978-80-7368-963-6 http://conference.osu.eu/globalization/publ2011/379-387_Zamfir-Popescu.pdf. From the total budget of 110 million lei (approximately €27 million) the highest amount was distributed to the North-East region, and to the South Muntenia region, while the lowest amount was allocated to the West region (Figure 7). Figure 7: Financial allocations per region through the "Green House Program" 20000000 15000000 (le i) 10000000 5000000 0 NorthWest NorthEast West Centre SouthWest SouthEast South BucharestMuntenia Ilfov Source: Authors' calculations based on data from the Ministry of the Environment and Forests 2010 Romania's Environment Fund Administration is the authority that approves the financing, and a client may receive up to 80% of the eligible expenses of the project. The applicant has to fulfill some conditions in order to be eligible to get financing from the "Green House Program": (a) to have residence in Romania; (b) to be the owner or co-owner of the real estate in which the project is implemented; (c) to have no outstanding obligations to the state budget, local budgets, according to the national legislation; and (d) to infringe no laws on environmental protection and to sponsor no activities having a negative impact on the environment in the previous activities before starting the project. Conclusions This study has revealed that a possible local solution to global environmental problems of competitive cities and regions may be to promote and support the use of renewable energy. Among the success factors of competitive cities and regions renewable energy plays a major role. Cities and regions may be encouraged to become sustainable green cities by using renewable energy, and thus green energy may become a part of the successful brand of competitive cities and regions. In addition, the study has revealed that there is a need for co-operation, for a strong partnership between the local stakeholders in order to develop competitive green cities, and also for actions or programs that may promote and/or support the use of renewable energy for the development of cities and regions in Romania. The "Green House Program" for using renewable energy in Romania's cities and regions is a good example of raising the "green competitiveness" of cities and regions because it finances the installation of heating systems using renewable energy, including replacing or supplementing traditional heating systems. The results of this study may be used for upcoming research in the area of implementing renewable energy projects for the development of competitive cities and regions in a world of globalization. 385 Zamfir, Andreea, and Ruxandra-Irina Popescu. “Promoting Renewable Energy – A Local Solution to Global Environmental Problems of Competitive Cities and Regions.” In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011. ISBN 978-80-7368-963-6 http://conference.osu.eu/globalization/publ2011/379-387_Zamfir-Popescu.pdf. Acknowledgments This work was supported by the European Social Fund through Sectoral Operational Programme Human Resources Development 2007-2013, project number POSDRU/89/1.5/S/59184 "Performance and excellence in postdoctoral research in Romanian economics science domain". References Applica & Ismeri Europa 2011. Inception Report. Expert Evaluation Network Delivering Policy Analysis. 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