Energy consumption and economic growth: the case of Turkey

Energy sources affect consumption in terms of production and living comfort in the industry and is one of the most important parameters of the economy in terms of competition. Energy consumption is directly proportional to a country's standard of living and economic growth, which directly affects the welfare of society. Energy supply to meet this consumption in direct proportion to increasing energy consumption as a result of population growth, industrialization and modern urbanization is an effective tool to consider. This situation gains importance in determining the energy strategies and policies of countries within the scope of energy market. Turkey is importing its energy needs compared to approximately 75% and an energy-dependent country in economic growth. In this study; by analyzing data for the year 1970 2015 period related to Turkey's economy, energy consumption value for Turkey and real gross domestic product (GDP) as a measure of economic growth by using the relationship between energy consumption and economic growth were examined. In this study, unit root tests were used to test the stability of this relationship, Granger causality test was used to determine causality, cointegration test was used to determine long-term relationship. As a result of the study, it is concluded that the gross domestic product (GDP) and energy consumption are cointegrated and a one-way causality relationship from energy consumption to real GDP. In addition, the effect of different energy sources on economic growth is examined using the same methods.