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Boosting Energy Efficiency in Turkey: The Role of Public–Private Partnership Investment

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  • Mehmet Balcilar

    (Department of Economic, Eastern Mediterranean University, Famagusta 99628, North Cyprus, Turkey
    Department of Economics, OSTIM Technical University, Ankara 06374, Turkey)

  • Gizem Uzuner

    (Faculty of Economics, Administrative and Social Sciences, Department of Economics and Finance, Istanbul Gelisim University, Istanbul 34310, Turkey)

  • Chinazaekpere Nwani

    (Department of Economics and Development Studies, Alex Ekwueme Federal University Ndufu-Alike, Abakaliki P.O. Box 1010, Ebonyi State, Nigeria)

  • Festus Victor Bekun

    (Faculty of Economics Administrative and Social Sciences, Department of International Logistics and Transportation, Istanbul Gelisim University, Istanbul 34310, Turkey
    Adnan Kassar School of Business, Department of Economics, Lebanese American University, Beirut 1102 2801, Lebanon)

Abstract

This study draws motivation from the United Nations Sustainable Development Goals (7.8.11), which highlight pertinent issues across the globe, among which are access to energy, responsible consumption, and sustainable development. To this end, we explored the pivotal role of public–private partnerships (PPP) investment in energy in Turkey, which is currently on an aggressive trajectory for its energy mix to energy efficiency. To avoid omitted variable bias in econometric strategies, we controlled for vital macroeconomic indicators such as foreign direct investment (FDI), trade flow, and economic growth. Empirical results showed a long-run equilibrium relationship between the outlined variables as traced by the autoregressive distributed lag (ARDL) bounds test. Subsequently, we observed a positive relationship between public–private partnership (PPP) investment in energy and the country’s energy intensification in both the short and long runs. A similar trend was observed between FDI, GDP growth, and energy intensity. These outcomes have inherent policy caveats for the Turkish energy sector and economic trajectory. Policy implications include efficient investment in clean energy (renewables) as part of Turkey’s effort toward energy intensification to guarantee sustainable development. Additionally, the involvement of PPP is a welcome dimension for sustainable economic growth. Further insights are documented in the concluding remarks.

Suggested Citation

  • Mehmet Balcilar & Gizem Uzuner & Chinazaekpere Nwani & Festus Victor Bekun, 2023. "Boosting Energy Efficiency in Turkey: The Role of Public–Private Partnership Investment," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2273-:d:1047217
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