Relationship between Renewable Energy Consumption and Sustainable Economic Growth: The Case of Turkey

Abstract

Energy is a fundamental factor in increasing individual and social well-being. The sustainability of growth depends on the diversification of energy resources. Dependence on foreign energy, such as Turkey’s national income in countries with high employment, investment opportunities, environmental factors, and the importance of security of energy supply in areas such as renewable energy resource diversification is increasing with each passing day. In this study, by considering Turkey’s renewable energy potential, it aimed to analyze the relationship of economic growth-renewable energy consumption.According to the results of the analysis, all the variables except for GDP-GEO variables have reached to the result that they act together in the long run. In addition, a one-way causality relationship between GDP, WIND, SOLAR and HYDRO was established and it was determined that BIOMASS and HYDRO variables are positive and GEO variable has negative effect on GDP.