THE IMPACT OF RENEWABLE AND NON-RENEWABLE ENERGY CONSUMPTION ON ECONOMIC GROWTH IN TURKEY

Abstract

Effective, efficient and environmentally sensitive use of energy resources is of great importance in line with sustainable development goals in the country's economies. In this study, the effects of renewable energy consumption and non-renewable energy consumption on economic growth were investigated. Technological development was also added to the model as an explanatory variable. ARDL bounds test is used to determine the long-run relationship between the series in studies using annual data covering the period 1978-2016 in Turkish economy. In the next step, in addition to the ARDL model, long run coefficient estimates for variables were made with DOLS, FMOLS and CCR methods. Findings of the study reveal the existence of cointegration relations between renewable energy consumption, nonrenewable energy consumption, technological development and economic growth variables. Long run coefficient estimation results confirm that renewable energy and non-renewable energy consumption have positive effects on economic growth. In the study, it was also determined that the technological development variable included in the model as a control variable had a positive effect on economic growth. The obtained findings, Turkey gives the opportunity of making important policy implications for the economy.