Energy Policy Issues in Turkey

Abstract

Energy is the source of development of the mankind and an indispensable input for economic growth. Currently, most of the energy consumed in the world is composed of fossil fuels which are not environmentally friendly and reliable since their prices are volatile and their supply compels importing countries dependent on energy exporting countries. Thus, a good remedy to reduce fossil fuel dependency is to utilize more renewable energy resources. Renewable resources can be replenished quickly, are almost infinite and would lead a country to sustainable development. The Republic of Turkey is a net importer of energy. The diversification of energy sources and supply security is of great importance for it. Thus, the objective of this study is to analyze the relationship between renewable energy production and economic growth in Turkey by using Johansen Cointegration Test, Vector Error Correction Model (VECM), Granger Causality Test and the Augmented Dickey-Fuller Test (ADF). Consequently, both long run and short run a casualty running from GDP growth to renewable energy production is determined in the study.

A Comparative Analysis of the Relationship between Renewable Energy Production and Economic Growth

“…studied the relationship between renewable and nonrenewable energy consumption and economic growth in 17 emerging economies between 1980 and 2012 using bootstrap panel causality analysis. In terms of renewable energy, the results confirmed the growth hypothesis for Peru; the conservation hypothesis for Thailand and Columbia; the feedback hypothesis for Greece and South Korea; and the neutrality hypothesis for the other 12 Dinç et. al.…”