Investigating the relationship between financial development and renewable energy consumption in Türkiye: Extended ARDL border test application

Öz

This study aims to analyze the impact of financial development on renewable energy consumption in Türkiye. The study was conducted using annual data for the period 1990–2023 and was analyzed using the Augmented ARDL (A-ARDL) bounds test to reveal the long-term and short-term relationships between the variables. The findings show that financial development significantly and positively affects renewable energy consumption in the long term through the credit channel. In addition, the error correction mechanism in the model is strong and reveals that the system recovers quickly from imbalances. In the short-term findings, it was shown that credit and stock exchange have positive and negative effects on renewable energy consumption. In line with the results obtained, it is suggested that energy policies in Türkiye should be supported by sustainable financing instruments and that aligning the financial system with environmental goals is of critical importance for the success of the energy transformation process.

Anahtar Kelimeler

• Financial development
• Renewable energy consumption
• Economic development

Kaynakça

1. [1] Adebayo TS, Agyekum EB, Kamel S, Zawbaa HM, Altuntaş M. Drivers of environmental degradation in Turkey: designing an sdg framework through advanced quantile approaches. Energy Reports 2022;8:29, 2008-2021. https://doi.org/10.1016/j.egyr.2022.01.020.
2. [2] Anton SG, Nucu AEA. The effect of financial development on renewable energy consumption. A panel data approach, Renewable Energy, Elsevier 2020;147:330-338. https://doi.org/10.1016/j.renene.2019.09.005.
3. [3] Apergis N, Payne, JE. Renewable energy consumption and economic growth: evidence from a panel of OECD countries. Energy Policy 2010;38:1, 656-660. https://doi.org/10.1016/j.enpol.2009.09.002.
4. [4] Bozkurt H. Yurtiçi tasarruflar kurumsal kalite ve doğrudan yabancı yatırımlar arasındaki etkileşim: genişletilmiş ARDL yönteminden kanıtlar. Ünye İktisadi ve İdari Bilimler Fakültesi Dergisi 2024;6:2,137-152.https://dergipark.org.tr/tr/pub/uiibfd/issue/88820/1602814#article_cite
5. [5] Brunnschweiler CN. Finance for renewable energy: an empirical analysis of developing and transition economies, Environment and Development Economics 2010;15:3,241-274. https://doi.org/10.1017/S1355770X1000001X.
6. [6] Central Bank of the Republic of Türkiye (CBRT). Electronic Data Delivery System (EDDS) 2025, Retrieved from https://evds2.tcmb.gov.tr.
7. [7] Dickey DA, Fuller WA. Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association 1979;74:366,427–431. https://doi.org/10.2307/2286348.
8. [8] Dong K, Sun R, Hochman, G. Do natural gas and renewable energy consumption lead to less CO₂ emission? Empirical evidence from a panel of BRICS countries. Energy 2018;141,1466-1478. https://doi.org/10.1016/j.energy.2017.11.092.

9. [9] Ersin İ. Türkiye’de kârların enflasyon üzerindeki etkisi: genişletilmiş ARDL model uygulaması. Muhasebe Bilim Dünyası Dergisi 2025;27:1,1-26. https://doi.org/10.31460/ mbdd.1609648.
10. [10] Ersin İ, Kırca M. Türkiye’de cari transfer harcamalarının enflasyon üzerindeki etkisi: kesirli frekanslı fourier ARDL sınır testi ile analizi. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi 2024;19: 3,887-905. https://doi.org/10.17153/oguiibf.1372668.
11. [11] İlarslan K,. Yıldız M. Yenilenebilir enerji yatırımlarının finansal belirleyicileri üzerine karşılaştırmalı bir analiz: Asya-Pasifik ve Latin Amerika ülkeleri, BMIJ 2022; 10:4,1397-115. https://doi.org/10.15295/bmij.v10i4.2170.
12. [12] Kavas YB, Çoban MN. Finansal gelişmenin yenilenebilir enerji tüketimine etkisinin toplamsal olmayan sabit etkili panel kantil yöntemiyle analizi: CIVETS ülkelerinden ampirik kanıtlar. Journal of Yaşar University 2023; 18:69, 60-78. https://doi.org/10.19168/jyasar.1174542.
13. [13] Kılınç EC, Şahbaz Kılınç N. Enerji ekonomisi araştırmaları 2022; Editörler: Efe Can Kılınç ve Özgür Engeloğlu. Nobel Yayıncılık: Ankara, Yayın No:1409, 1-26.
14. [14] Koç M, Kıymaz Kıvraklar M, Mert N. Nexus between renewable energy consumption financial development and economic growth: evidence from IEA countries. Erciyes Akademi 2022; 36:2,632-656. https://doi.org/10.48070/erciyesakademi.1089386.
15. [15] Kong Q, Peng D, Ni Y, Jiang X, and Wang Z. Trade openness and economic growth quality of China: empirical analysis using ARDL model. Finance Research Letters 2021;38:101488. https://doi.org/10.1016/j.frl.2020.101488.
16. [16] Menegaki AN. Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis. Energy Economics 2011;33:2,257-263. https://doi.org/10.1016/j.eneco.2010.10.004.
17. [17] Mukhtarov S. Yüksel S, Dinçer H. The impact of financial development on renewable energy consumption: evidence from Turkey. Renewable Energy 2022;187:169-176. https://doi.org/10.1016/j.renene.2022.01.061.
18. [18] Pala F, Barut A. Finansal gelişme ekonomik büyüme ve enerji tüketiminin çevresel kalite üzerindeki etkisi: E-7 ülkeleri örneği. Anadolu Üniversitesi Sosyal Bilimler Dergisi 2021; 21:2, 347-366. https://doi.org/10.18037/ausbd.959225.
19. [19] Paramati SR, Apergis N. The role of stock markets on environmental degradation: A comparative study of developed and emerging market economies across the globe. Emerging Markets Review 2017;31:1-14. https://doi.org/10.1016/j.ememar.2017.01.001.
20. [20] Pata UK. Renewable energy consumption urbanization financial development income and co2 emissions in Turkey: testing ekc hypothesis with structural breaks. Journal of Cleaner Production 2018;187:770-779. https://doi.org/10.18037/ausbd.959225.
21. [21] Pesaran MH, Shin Y, Smith R.J. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics 2001; 16:3, 289-326. DOI: 10.1002/jae.616.
22. [22] Pesaran MH, Shin Y, Smith RP. Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association 1999;94:446,621-634. https://doi.org/10.2307/2670182.
23. [23] Phillips PCB, Perron P. Testing for a unit root in time series regression. Biometrika 1988;75:2, 335-346. https://doi.org/10.1093/biomet/75.2.335.
24. [24] Powell D. Quantile regression with nonadditive fixed effects. Working Paper 2016; Retrieved October 20, 2019. https://works.bepress.com/david powell/1/download/.
25. [25] Prempeh KB. The impact of fnancial development on renewable energy consumption: new insights from Ghana. Prempeh Future Business Journal 2023;9:1,1-13. https://doi.org/10.1186/s43093-023-00183-7.
26. [26] Raza SA, Shah N, Qureshi MA. Qaiser, S., Ali, R. and Ahmed, F. Non-Linear threshold effect of financial development on renewable energy consumption: evidence from panel smooth transition regression approach. Environmental Science and Pollution Research 2020;27:3,32034-32047. https://doi.org/10.1007/s11356-020-09520-7.
27. [27] Sadorsky P. The impact of financial development on energy consumption in emerging economies. Energy Policy 2010;38:5, 2528-2535. https://doi.org/10.1016/j.enpol.2009.12.048.
28. [28] Sadorsky P. Financial development and energy consumption in Central and Eastern European frontier economies. Energy Policy 2011;39:2,999-1006. https://doi.org/10.1016/ j.enpol.2010.11.034.
29. [29] Sam CY, McNown R, Goh SK. An augmented autoregressive distributed lag bounds test for cointegration. EconomicModelling 2019;80:130-141.https://doi.org/10.1016/j.econmed.2018.11. 001.
30. [30] Ustaoğlu E. Yenilenebilir enerji tüketimi ve finansal gelişme ilişkisi: seçilmiş OECD ülkeleri örneği. Üçüncü Sektör Sosyal Ekonomi Dergisi 2022;57:1,280-293. https://doi.org/10.15659/3.sektor-sosyal-ekonomi.22.02.1718.
31. [31] World Bank. World Development Indicators. 2025, Retrieved from https://data.worldbank.org.
32. [32] Wu L, Broadstock, CD, Does economic financial and institutional development matter for renewable energy consumption? evidence from emerging economies. International Journal of Economic Policy in Emerging Economies 2015;8:1,20-39. https://doi.org/10.1504/IJEPEE.2015.068246.
33. [33] Yıldırım EB, Şenol Z, Finansal gelişme ile yenilenebilir enerji tüketimi arasındaki ilişki. International Journal of Economics Politics Humanities and Social Sciences 2024;7:1,12-29. https://doi.org/10.59445/ijephss.1375840.
34. [34] Yılmaz T. Yenilenebilir enerji tüketimi finansal gelişme ilişkisi: gelişmiş ülkeler üzerine bir araştırma. Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 2021;8:2, 1064-1081. https://doi.org/10.30798/makuiibf.909970.