The Effect of Renewable and Fossil Fuel Energy Consumption on Total Factor Productivity in G20 Countries

Abstract

The aim of this study is to examine the effect of both renewable and fossil fuel energy consumption on total factor productivity in G20 countries by using fixed effects with Driscoll and Kraay standard errors approach. Analysis results suggest that renewable energy consumption has a positive impact on total factor productivity in the long run. Accordingly, an increase in renewable energy consumption increases the total factor productivity by about 0.007 percent in the long run. Although the coefficient of fossil fuel energy consumption is positive, it is statistically insignificant. In this study, labor force and capital are included in model as control variables. While capital formation increases total factor productivity in the long run, total labor force decreases it. The results highlight the necessity of including renewable energy consumption and capital accumulation in possible policies to increase total factor productivity. Moreover, revising energy consumption policies to encourage renewable sources may be one of the priorities of policymakers to increase the positive impact of renewable energy consumption. 

Keywords

• Total Factor Productivity
• Energy
• Panel Data
• Cointegration

G20 Ülkelerinde Yenilenebilir ve Fosil Yakıt Enerji Tüketiminin Toplam Faktör Verimliliği Üzerindeki Etkisi

Abstract

Bu çalışmanın amacı Driscoll ve Kraay standart hatalar yaklaşımı ile sabit etkiler yöntemini kullanarak G20 ülkelerinde hem yenilenebilir hem de fosil yakıt enerji tüketiminin toplam faktör verimliliği üzerindeki etkisini incelemektir. Analiz sonuçları, yenilenebilir enerji tüketiminin uzun vadede toplam faktör verimliliği üzerinde olumlu bir etkiye sahip olduğunu göstermektedir. Buna göre, yenilenebilir enerji tüketimindeki bir artış, uzun vadede toplam faktör verimliliğini yaklaşık yüzde 0.007 oranında artırmaktadır. Fosil yakıt enerji tüketimi katsayısı pozitif olmasına rağmen istatistiksel olarak anlamsızdır. Bu çalışmada işgücü ve sermaye kontrol değişkenler olarak modele dahil edilmiştir. Uzun dönemde brüt sermaye oluşumu toplam faktör verimliliğini artırırken, toplam işgücü azaltıcı bir etkiye sahiptir. Sonuçlar, toplam faktör verimliliğini artırmak için olası politikalara yenilenebilir enerji tüketimi ve sermaye birikiminin dahil edilmesinin gerekliliğini vurgulamaktadır. Ayrıca, enerji tüketim politikalarının yenilenebilir kaynakları teşvik edecek şekilde revize edilmesi, yenilenebilir enerji tüketiminin olumlu etkisini artırmak için politika yapıcıların önceliklerinden biri olabilir.

Keywords

• Toplam Faktör Verimliliği
• Enerji
• Panel Veri
• Eşbütünleşme

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