The Analysis of the Critical Dependence Point of Price Decision in Relation With the Market Factors

Abstract

Starting from the economic effects of investments in green energy, the authors search to answer of the questions: What is the global energy balance determined by the investments in renewable energy? What are the economic, social and environmental effects? The answer to these questions is based on a case study which includes 10 investment projects in wind and solar energy, made in Romania. The research method is based on cost - benefit analysis and comparative analysis of the situation on the European energy market. The conclusions results show that the specific investment for green energy production is generally higher than the specific investment for conventional energy production. This lead to a low economic profitability. However, the low economic profitability is offset by environmental benefits, in the sense that they are not polluants and they have positive effects on sustainable development.