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The Relationship between Income Inequality and Energy Consumption: Evidence from Turkey

Year 2022, Volume: 20 Issue: 2, 236 - 244, 28.06.2022
https://doi.org/10.18026/cbayarsos.1056051

Abstract

It is stated in the literature that there is a bidirectional relationship between income inequality and energy consumption. In this regard, it is argued that the deepening of income inequality can reduce the total energy consumption by restricting the access of the poor to energy. Secondly, it is argued that individuals' having difficulties in obtaining the energy they need will cause problems in their education, health, and therefore business areas and increase income inequality. The aim of this study is to investigate the effect of income inequality on energy consumption in Turkey. For this purpose, the Turkish economy is analyzed by employing the Bayer and Hanck (2013) cointegration test over the period 1989-2018. According to the findings, there is no long-term relationship between income inequality and energy consumption. The causality relationship between the variables is also investigated by employing the test of Hacker and Hatemi (2010). According to the results of the causality test, there is no causal relationship between income inequality and energy consumption. In summary, deterioration in income inequality will not be expected to restrict the poor's access to energy and reduce total energy consumption. In short, it can be said that energy consumption and income inequality are independent of each other.

References

  • Aghaei, M., & Lawell, C.L. (2020). Energy, economic growth, ınequality, and poverty in Iran. Retrieved from http://clinlawell.dyson.cornell.edu/Iran_energy_growth_poverty_inequality_paper.pdf
  • Banerjee, A., Dolado, J., & Mestre, R. (1998). Error‐correction mechanism tests for cointegration in a single‐equation framework. Journal of Time Series Analysis, 19(3), 267-283. DOI:10.1111/1467-9892.00091
  • Bayer, C., & Hanck, C. (2013). Combining non‐cointegration tests. Journal of Time Series Analysis, 34(1), 83-95. DOI:10.1111/j.1467-9892.2012.00814.x
  • Boswijk, H.P. (1995). Efficient inference on cointegration parameters in structural error correction models. Journal of Econometrics, 69(1),133-158. DOI:10.1016/0304-4076(94)01665-M
  • BP (2020). https:// bp-stats-review-2020.
  • Çetin, M., & Çınar, U. (2021). Ticari dışa açıklık ve enerji tüketimi arasındaki ilişki: Türkiye ekonomisi için bir zaman serisi analizi. Doğuş Üniversitesi Dergisi, 22 (1), 57-74. Retrived from http://journal.dogus.edu.tr/index.php/duj/article/view/1341/pdf
  • Dickey, D., & Fuller, W. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-1072. DOI:10.2307/1912517
  • Dong, X., & Hao Y (2018). Would income inequality affect electricity consumption? Evidence from China. Energy, 142(C), 215–227. DOI: 10.1016/j.energy.2017.10.027
  • Engle, R.,& Granger, C. (1987). Cointegration and error correction: Representation, estimation and testing. Econometrica, 55(2), 251-276. Retrived from ttps://www.jstor.org/stable/1913236
  • Farooq, A., Chaudhary, A.R., & Nawaz, L.A. (2019). Trade openness, ınstitutions and ındustrial growth in Pakistan: An Application of Bayer and Hanck cointegration test. Abasyn Journal of Social Sciences, 12 (1), 38-49. DOI:10.34091/AJSS.12.1.04
  • Fatima, N., Li, Y., Ahmad, M., Jabeen, G., & Li, X. (2019). Analyzing long-term empirical interactions between renewable energy generation, energy use, human capital, and economic performance in Pakistan. Energy, Sustainability and Society, 9(42), 1-14. DOI:10.1186/s13705-019-0228-x Hacker, R. S., & Hatemi-J A. (2006). Tests for causality between ıntegrated variables using asymptotic and bootstrap distributions: Theory and application. Applied Economics, 38(13), 1489 – 1500. DOI:10.1080/00036840500405763
  • Hacker, R.S., & Hatemi-J., A. (2010). A Bootstrap test for causality with endogenous lag length choice- theory and application in finance. Working Paper Series in Economics and Institutions of Innovation, 223, Royal Institute of Technology, CESIS.Rerived from https://static.sys.kth.se/itm/wp/cesis/cesiswp223.pdf Hanif, N., Arshed, N., & Aziz, O. (2020). On interaction of the energy: Human capital Kuznets curve? A case for technology innovation. Environment, Development and Sustainability, 22, 7559–7586. DOI: 10.1007/s10668-019-00536-9
  • Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in gaussian vector autoregressive models. Econometrica, 59(6), 1551-1580. Retrived from https://www.jstor.org/stable/pdf/2938278.pdf
  • Lu, J, Imran, M., Haseeb, A., Saud, S., Wu, M., Siddiqui, F., & Khan, MJ. (2021). Nexus between financial development, fdı, globalization, energy consumption and environment: evidence from BRI countries. Frontiers in Energy Research, 9(707590), 1-12. DOI:10.3389/fenrg.2021.707590
  • Solt, F. (2020). Measuring income iequality across countries and over time: The standardized world income inequality database. Social Science Quarterly, 101(3),1183-1199. SWIID. Retrived from https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/LM4OWF
  • Sonora, R.J. (2021). A panel analysis of income inequality and energy use. Contemporary Economic Policy, 2021, 1–15. DOI: 10.1111/coep.12550
  • Toda, H.Y.,& Yamamoto, (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66, 225- 250. DOI:10.1016/0304-4076(94)01616-8
  • WDI (2020).World development indicators. https://databank.worldbank.org/source/world-development-indicators
  • Yao, Y., Ivanovski, K., Inekwe, J., & Smyth, R. (2019). Human capital and energy consumption: Evidence from OECD countries. Energy Economics, 84, 104534. DOI: 10.1016/j.eneco.2019.104534

Gelir Eşitsizliği ve Enerji Tüketimi İlişkisi: Türkiye Örneği

Year 2022, Volume: 20 Issue: 2, 236 - 244, 28.06.2022
https://doi.org/10.18026/cbayarsos.1056051

Abstract

Literatürde gelir eşitsizliği ve enerji tüketimi arasında çift yönlü bir ilişkinin söz konusu olabileceği ifade edilmektedir. Bu hususta ilk olarak gelir eşitsizliğindeki derinleşmenin, yoksul kesimin enerjiye erişimini kısıtlayarak toplam enerji tüketimini azaltabileceği savunulmaktadır. İkinci olarak, bireylerin ihtiyaç duyduğu enerjiyi elde etmekte zorlukla karşılaşmasının onların eğitim, sağlık ve dolayısıyla iş alanlarında problemlere yol açarak gelir eşitsizliğini artıracağı ileri sürülmektedir. Bu çalışmanın amacı da, gelir eşitsizliğinin enerji tüketimi üzerindeki etkisini Türkiye için araştırmaktır. Bu amaçla Türkiye ekonomisi 1989-2018 dönemi için Bayer ve Hanck (2013) eşbütünleşme testi ile analiz edilmiştir. Elde edilen bulgulara göre, gelir eşitsizliği ve enerji tüketimi arasında uzun dönemde bir ilişki bulunmamaktadır. Çalışmada ayrıca değişkenler arasındaki nedensellik ilişkisi Hacker ve Hatemi (2010) testi ile sorgulanmıştır. Test sonuçlarına göre, gelir eşitsizliği ve enerji tüketimi arasında bir nedensellik ilişkisi söz konusu değildir. Özetle, gelir dağılımı adaletindeki bozulmaların yoksulların enerjiye erişimini kısıtlaması ve toplam enerji tüketimini azaltması beklenmeyecektir. Kısaca, enerji tüketimi ve gelir eşitsizliğinin birbirinden bağımsız olduğu söylenebilir.

References

  • Aghaei, M., & Lawell, C.L. (2020). Energy, economic growth, ınequality, and poverty in Iran. Retrieved from http://clinlawell.dyson.cornell.edu/Iran_energy_growth_poverty_inequality_paper.pdf
  • Banerjee, A., Dolado, J., & Mestre, R. (1998). Error‐correction mechanism tests for cointegration in a single‐equation framework. Journal of Time Series Analysis, 19(3), 267-283. DOI:10.1111/1467-9892.00091
  • Bayer, C., & Hanck, C. (2013). Combining non‐cointegration tests. Journal of Time Series Analysis, 34(1), 83-95. DOI:10.1111/j.1467-9892.2012.00814.x
  • Boswijk, H.P. (1995). Efficient inference on cointegration parameters in structural error correction models. Journal of Econometrics, 69(1),133-158. DOI:10.1016/0304-4076(94)01665-M
  • BP (2020). https:// bp-stats-review-2020.
  • Çetin, M., & Çınar, U. (2021). Ticari dışa açıklık ve enerji tüketimi arasındaki ilişki: Türkiye ekonomisi için bir zaman serisi analizi. Doğuş Üniversitesi Dergisi, 22 (1), 57-74. Retrived from http://journal.dogus.edu.tr/index.php/duj/article/view/1341/pdf
  • Dickey, D., & Fuller, W. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-1072. DOI:10.2307/1912517
  • Dong, X., & Hao Y (2018). Would income inequality affect electricity consumption? Evidence from China. Energy, 142(C), 215–227. DOI: 10.1016/j.energy.2017.10.027
  • Engle, R.,& Granger, C. (1987). Cointegration and error correction: Representation, estimation and testing. Econometrica, 55(2), 251-276. Retrived from ttps://www.jstor.org/stable/1913236
  • Farooq, A., Chaudhary, A.R., & Nawaz, L.A. (2019). Trade openness, ınstitutions and ındustrial growth in Pakistan: An Application of Bayer and Hanck cointegration test. Abasyn Journal of Social Sciences, 12 (1), 38-49. DOI:10.34091/AJSS.12.1.04
  • Fatima, N., Li, Y., Ahmad, M., Jabeen, G., & Li, X. (2019). Analyzing long-term empirical interactions between renewable energy generation, energy use, human capital, and economic performance in Pakistan. Energy, Sustainability and Society, 9(42), 1-14. DOI:10.1186/s13705-019-0228-x Hacker, R. S., & Hatemi-J A. (2006). Tests for causality between ıntegrated variables using asymptotic and bootstrap distributions: Theory and application. Applied Economics, 38(13), 1489 – 1500. DOI:10.1080/00036840500405763
  • Hacker, R.S., & Hatemi-J., A. (2010). A Bootstrap test for causality with endogenous lag length choice- theory and application in finance. Working Paper Series in Economics and Institutions of Innovation, 223, Royal Institute of Technology, CESIS.Rerived from https://static.sys.kth.se/itm/wp/cesis/cesiswp223.pdf Hanif, N., Arshed, N., & Aziz, O. (2020). On interaction of the energy: Human capital Kuznets curve? A case for technology innovation. Environment, Development and Sustainability, 22, 7559–7586. DOI: 10.1007/s10668-019-00536-9
  • Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in gaussian vector autoregressive models. Econometrica, 59(6), 1551-1580. Retrived from https://www.jstor.org/stable/pdf/2938278.pdf
  • Lu, J, Imran, M., Haseeb, A., Saud, S., Wu, M., Siddiqui, F., & Khan, MJ. (2021). Nexus between financial development, fdı, globalization, energy consumption and environment: evidence from BRI countries. Frontiers in Energy Research, 9(707590), 1-12. DOI:10.3389/fenrg.2021.707590
  • Solt, F. (2020). Measuring income iequality across countries and over time: The standardized world income inequality database. Social Science Quarterly, 101(3),1183-1199. SWIID. Retrived from https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/LM4OWF
  • Sonora, R.J. (2021). A panel analysis of income inequality and energy use. Contemporary Economic Policy, 2021, 1–15. DOI: 10.1111/coep.12550
  • Toda, H.Y.,& Yamamoto, (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66, 225- 250. DOI:10.1016/0304-4076(94)01616-8
  • WDI (2020).World development indicators. https://databank.worldbank.org/source/world-development-indicators
  • Yao, Y., Ivanovski, K., Inekwe, J., & Smyth, R. (2019). Human capital and energy consumption: Evidence from OECD countries. Energy Economics, 84, 104534. DOI: 10.1016/j.eneco.2019.104534
There are 19 citations in total.

Details

Primary Language Turkish
Journal Section Articles
Authors

Ayşe Arı 0000-0002-8485-5932

Publication Date June 28, 2022
Published in Issue Year 2022 Volume: 20 Issue: 2

Cite

APA Arı, A. (2022). Gelir Eşitsizliği ve Enerji Tüketimi İlişkisi: Türkiye Örneği. Manisa Celal Bayar Üniversitesi Sosyal Bilimler Dergisi, 20(2), 236-244. https://doi.org/10.18026/cbayarsos.1056051