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"PMG/ARDL modeling"
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Investigating the Key Factors Influencing the Profitability of Romanian Public Water Supply and Sewerage Services
by
Vancea, Diane Paula Corina
,
Saseanu, Andreea Simona
,
Banghiore, George
in
Accounting - Business Administration
,
Business Economy / Management
,
Economy
2025
This paper explores the dynamics of the public water supply and sewerage service in Romania, focusing on the relationships between different operational, commercial and financial variables and their impact on the operating profit rate. The aim of the paper is to analyze the interactions, both in the short and in the long term, between these economic variables, using an advanced econometric methodology, by applying the ARDL (Autoregressive Distributed Lag) model. The analysis was carried out on a dataset of 11 annual cycles, allowing to assess the stability and dynamics of the relationships studied. The results indicate a positive correlation between water infrastructure expansion and the rate of profit, suggesting that investments in network length can contribute to the economic growth of the sector. In contrast, tariff increases showed a long-term negative impact on the profit rate, reflecting consumers' sensitivity to price changes. Efficient management of non-revenue water and damage reduction were also found to be key to improve financial performance and increase sustainability. The paper provides an in-depth understanding of market mechanisms and can support the development of more effective public policies for water resource management in the context of current socio-economic and environmental challenges.
Journal Article
The Impact of Export Concentration on the Ecological Footprint in the European Union
by
Can, Muhlis
,
Brusselaers, Jan
,
van den Wall Bake, Kiri
in
Ecological footprint
,
Economic growth
,
Emissions
2024
This study aims to evaluate the impact of export product concentration on the ecological footprint in the European Union between 1995 and 2018, using the environmental Kuznets curve framework. We utilized the pooled mean group/autoregressive distributed lag approach, which confirmed the environmental Kuznets curve hypothesis within the European Union. In addition, our findings reveal that export concentration has a negative impact on the ecological footprint, whereas energy consumption increases the ecological footprint. To further validate the obtained results, we conducted robustness checks using the fully modified ordinary least squares and dynamic ordinary least squares approaches, which validated the previous outcomes of the pooled mean group/autoregressive distributed lag approach. In the last step of our study, we employed the Dumitrescu–Hurlin causality analysis, which revealed a bidirectional causality involving the ecological footprint and energy consumption. These empirical findings directly result in valuable recommendations for policymakers.
Journal Article