The Impact of Economic Growth, Technological Development, and Trade Openness on Renewable Energy Use in Turkey: The Fourier Engle-Granger Cointegration Approach

Year 2022, Volume: 22 Issue: 3, 309 - 322, 01.07.2022

Mustafa Naimoğlu

https://doi.org/10.21121/eab.984127

Cited By: 1

Abstract

Compared to 1990 in 2019, Turkey increased its total energy imports by 287.03%, its total GDP by 123.28%, and its total renewable energy use by 774.26%. Therefore, the difference of this study from other studies is to investigate the factors affecting the increase in the use of renewable energy, which is very important for energy importer Turkey in reducing foreign dependency in the field of energy. Another difference in this study is that the long-term relationship that is not revealed by a traditional co-integration test is revealed by the current Fourier co-integration test. For this purpose, economic growth, technological development, and trade openness the use of renewable energy are analyzed with annual data for the period 1990-2019. Firstly, standard ADF and Fourier-ADF stationarity tests were used for the stationarity of the series. Then traditional and current Fourier cointegration tests were used. according to the traditional cointegration test, the cointegration relationship was not found, while according to the Fourier cointegration test was found. Later, fmols and CCR estimators were used for short-long-term cointegration coefficients. Conclusions for Turkey, long-term economic growth, and technological development are important in increasing the use of renewable energy sources.

Keywords

Economic Growth, Technological Development, Trade Openness, Renewable Energy Use, Fourier Engle-Granger Cointegration, Turkey.

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