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Coal Consumption and Economic Growth in Turkey

Author

Listed:
  • Oguz Ocal

    (Nevsehir University, Avanos Vocational High School, Nevsehir, Turkey)

  • Ilhan Ozturk

    (Cag University, Faculty of Economics and Business, Mersin, Turkey)

  • Alper Aslan

    (Nevsehir University, Faculty of Economics and Administrative Sciences, Nevsehir, Turkey)

Abstract

This aim of this paper is to use asymmetric causality tests to examine the coal consumption and Gross Domestic Product (GDP) relationship in Turkey based on data from 1980 to 2006. To investigate this relationship, a multivariate system is employed by including fixed capital formation and labor force variables into the model. The empirical results obtained from asymmetric causality tests show no causality for coal consumption and GDP relationship in Turkey. The results indicate that coal consumption does not affect growth; hence, energy conservation policies may be pursued without adversely affecting growth in Turkey. Thus, neutrality hypothesis is confirmed for Turkey. This means that a decrease in coal consumption does not affect economic growth and vice versa. In this case, policymakers should explore the feasibility of either decreasing the coal consumption or increasing the efficiency of coal consumption.

Suggested Citation

  • Oguz Ocal & Ilhan Ozturk & Alper Aslan, 2013. "Coal Consumption and Economic Growth in Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 3(2), pages 193-198.
    • Handle: RePEc:eco:journ2:2013-02-9
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    Cited by:

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    More about this item

    Keywords

    Economic growth; coal consumption; asymmetric causality; Turkey;
    All these keywords.

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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