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Coal Consumption and Economic Growth in Turkey

  • 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)

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.

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Article provided by Econjournals in its journal International Journal of Energy Economics and Policy.

Volume (Year): 3 (2013)
Issue (Month): 2 ()
Pages: 193-198

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Handle: RePEc:eco:journ2:2013-02-9
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  1. Abdulnasser Hatemi-J, 2012. "Asymmetric causality tests with an application," Empirical Economics, Springer, vol. 43(1), pages 447-456, August.
  2. Jinke, Li & Hualing, Song & Dianming, Geng, 2008. "Causality relationship between coal consumption and GDP: Difference of major OECD and non-OECD countries," Applied Energy, Elsevier, vol. 85(6), pages 421-429, June.
  3. Apergis, Nicholas & Payne, James E., 2010. "Coal consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(3), pages 1353-1359, March.
  4. Li, Raymond & Leung, Guy C.K., 2012. "Coal consumption and economic growth in China," Energy Policy, Elsevier, vol. 40(C), pages 438-443.
  5. Ziramba, Emmanuel, 2009. "Disaggregate energy consumption and industrial production in South Africa," Energy Policy, Elsevier, vol. 37(6), pages 2214-2220, June.
  6. Apergis, Nicholas & Payne, James E., 2010. "The causal dynamics between coal consumption and growth: Evidence from emerging market economies," Applied Energy, Elsevier, vol. 87(6), pages 1972-1977, June.
  7. Yoo, Seung-Hoon, 2006. "Causal relationship between coal consumption and economic growth in Korea," Applied Energy, Elsevier, vol. 83(11), pages 1181-1189, November.
  8. Sari, Ramazan & Soytas, Ugur, 2004. "Disaggregate energy consumption, employment and income in Turkey," Energy Economics, Elsevier, vol. 26(3), pages 335-344, May.
  9. A. Hatemi-J, 2003. "A new method to choose optimal lag order in stable and unstable VAR models," Applied Economics Letters, Taylor & Francis Journals, vol. 10(3), pages 135-137.
  10. Ozturk, Ilhan, 2010. "A literature survey on energy-growth nexus," Energy Policy, Elsevier, vol. 38(1), pages 340-349, January.
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