THE RELATIONSHIP BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN TÜRKİYE

Year 2024, Volume: 7 Issue: 1, 54 - 71, 02.07.2024

Deniz Dilara Dereli , İsmail Ertek

https://doi.org/10.46737/emid.1389225

Abstract

The interplay between energy resource distribution and usage is pivotal for sustainable economic growth and development. Addressing global warming and climate change is essential, necessitating a shift towards renewable energy sources and reducing reliance on harmful energy types. Central to this endeavor is producing within the bounds of global steps and measures, fostering a sustainable relationship between humanity and resources, and achieving economic growth without depleting our natural endowments. The industrial sector's reliance on fossil fuels primarily contributes to rising carbon emissions, causing environmental degradation and climate change. This study scrutinizes the dynamics between energy consumption and economic growth in Türkiye from 1980 to 2020. Utilizing the Granger Causality Test, Johansen Cointegration Test, and Vector Error Correction Model, a causal link between energy consumption and economic growth was identified. Based on these findings, policy recommendations have been proposed to guide sustainable energy use and economic expansion.

Keywords

Energy Consumption, Economic Growth, Causality Relationship

THE RELATIONSHIP BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN TÜRKİYE

Abstract

The distribution of energy resources in energy use, which stands out as a fundamental element for economic growth and development, is important for the sustainability of economic growth and development. In this context, problems such as global warming and climate change should be prevented by increasing renewable energy resources and minimizing the use of energy resources that harm natural life. The most important issue is to produce within the framework of the steps and measures taken worldwide, to establish the correct relationship between people and resources, and to realize economic growth by protecting resources. Increasing carbon emissions, especially because of fossil fuels used to meet the energy demand of industry, cause irreversible environmental problems and lead to climate change. This study analyzes the relationship between energy consumption and economic growth in Turkey between 1980-2020. In the analysis, the causality relationship has been investigated by Granger Causality Test, Johansen Cointegration Test and Vector Error Correction Model and as a result of the analysis causality relationship from growth to energy consumptions has been found. In line with the findings of the study, policy recommendations on energy consumption and economic growth have been formulated.

Keywords

Energy Consumption, ,Economic Growth, Causality Relationship

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