The Relationship Between Financial Development and Renewable Energy Consumption

Abstract

Today, energy demand is constantly increasing. Environmental sustainability leads countries to renewable energy in order to prevent their dependence on other countries for energy and to create an alternative to scarce energy resources. Financial markets play an important role in meeting the financing needs of the renewable energy sector. This study investigates the relationship between financial development and renewable energy consumption. Understanding how financial development affects renewable energy consumption gives countries the chance to develop a competitive, well-founded and sustainable energy sector, while renewable energy consumption encourages countries to reduce their dependence on energy imports by affecting financial development. The study was conducted using annual financial development index and renewable energy consumption data of 14 European countries and Turkey for the period 2004-2019. In the estimation of the relationship between variables, the prerequisite of Konya (2006) causality test, which can be applied in the case of inter-unit correlation and parameter heterogeneity, is provided. In the study, a unidirectional causality relationship was found from renewable energy consumption (REC) to financial development index (FDI). In this respect, it can be said that renewable energy investments will increase the flow of funds to financial markets and provide investor inflows.

Keywords

• Financial Development
• Renewable Energy
• Causality Test

Finansal Gelişme ile Yenilenebilir Enerji Tüketimi Arasındaki İlişki

Abstract

Günümüzde enerji talebi sürekli olarak artmaktadır. Çevresel sürdürülebilirlik, ülkeleri enerji konusunda diğer ülkelere bağımlılıklarını önlemek ve kıt olan enerji kaynaklarına bir alternatif oluşturmak amacıyla yenilenebilir enerjiye yönlendirmektedir. Yenilenebilir enerji sektörünün ihtiyaç duyduğu finansman ihtiyacının karşılanmasında finansal piyasalar önemli rol oynamaktadır. Bu çalışmada, finansal gelişmişlik ile yenilenebilir enerji tüketimi arasındaki nedensellik araştırılmıştır. Finansal gelişmenin yenilenebilir enerji tüketimini nasıl etkilediğini anlamak, ülkelere rekabetçi, sağlam temelli ve sürdürülebilir bir enerji sektörü geliştirme şansı verirken, yenilenebilir enerji tüketiminin finansal gelişmeyi etkileyerek, ülkelerin enerji ithalatına olan bağımlılığını azaltmayı teşvik etmesi, çalışmanın önemini vurgulamaktadır. Çalışma, 14 Avrupa ülkesi ve Türkiye’nin 2004-2019 dönemine ait yıllık finansal gelişmişlik endeksi ve yenilenebilir enerji tüketimi verileri kullanılarak yapılmıştır. Değişkenler arası ilişkinin tahmininde, birimler arası korelasyon ve parametre heterojenliği durumlarında kullanılabilen Konya (2006) nedensellik testi uygulanmıştır. Çalışmada yenilenebilir enerji tüketiminden (YET) finansal gelişmişlik endeksine (FGE) doğru tek yönlü nedensellik ilişkisi tespit edilmiştir. Buna bağlı olarak yenilenebilir enerji yatırımlarının finansal piyasalara fon akışını artıracağı ve yatırımcı girişi sağlayacağı söylenebilir.

Keywords

• Finansal Gelişme
• Yenilenebilir Enerji
• Nedensellik Testi

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