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".
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In The Scale of Globalization. Think Globally, Act Locally, Change Individually in the 21st Century, 379-387. Ostrava: University of Ostrava, 2011.
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