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Investigating the linkage between Renewable Energy Consumption and Economic Growth: The case of Turkey

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  • Khobai, Hlalefang

Abstract

The study purposes to investigate the relationship between renewable energy consumption and economic growth in Turkey using annual data covering the period 1990–2014. The Autoregressive Distributed Lag (ARDL) model is applied and the findings suggest existence of a long run relationship among the variables. The ARDL long run estimation results discovered that renewable energy consumption has a positive and significant effect on economic growth. The results from the Vector Error Correction Model (VECM) reveals that there is a unidirectional causality flowing from economic growth to renewable energy consumption without feedback. This findings bring a fresh perspective for policy makers for long run and sustainable economic development in Turkey.

Suggested Citation

  • Khobai, Hlalefang, 2018. "Investigating the linkage between Renewable Energy Consumption and Economic Growth: The case of Turkey," MPRA Paper 85082, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:85082
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    References listed on IDEAS

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    More about this item

    Keywords

    Renewable energy consumption; Economic growth; Causality; Turkey;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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