The impact of energy consumptions on the national economy: The case of Türkiye and selected countries

The basic element in sustaining life is energy. Renewable energy is both budget-friendly and environmentally friendly, as it is self-renewing and therefore non-exhaustible. The reason behind the recent preference for renewable energy over non-renewable energy is multidimensional: economic, social and political. Countries support and encourage investments in renewable energy through various policies. The impact of renewable energy on national economies is one of the main reasons underlying this situation. The impact of renewable energy on the country's economy is not only related to the energy resources and energy production phase. Because the consumption of renewable energy is also among the factors that have an impact on national economies. In this respect, it has become a matter of curiosity and discussion whether the renewable energy consumption can be met with existing resources or not, and at what level its impact on national economies is. This study aims to clarify these debates and to reveal the impact of energy consumption on the national economy. For this purpose, panel data analysis method was used in the study by utilizing the Neoclassical growth function and the impact of energy consumption on the economy was investigated. At the end of the research, it is concluded that increases in energy consumption decrease the Gross Domestic Product.