Effects of tourism and economic growth on sustainable electricity consumption: Fresh evidence from Türkiye

Year 2023, Volume: 5 Issue: 2, 135 - 143, 04.01.2024

Cuma Demirtaş

https://doi.org/10.48119/toleho.1382389

Abstract

This study investigated the impact of tourism and economic growth on electricity consumption in the Turkish economy, which operates under an open system, throughout the time span from 1995 to 2022. The analysis employed the ARDL bounds test method and the wavelet-based Fourier causality test. The empirical evidence demonstrates the presence of a long-term cointegration relationship among economic growth, tourist arrivals, and consumption of electricity. The research findings indicate a positive relationship between economic growth, tourist arrivals, and power consumption. To enhance the robustness of the findings, the series underwent wavelet processing, followed by the application of Fourier causality analysis to these transformed series. Wavelet-based causality analysis reveals that trade openness exerts a significant influence on not only electricity consumption but also on tourism and economic growth. The results additionally indicate that shocks exhibit persistence across all components.

Keywords

Tourism economy, Growth, Electricity Consumption, ARDL, Wavelet

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