The effect of energy consumption on growth at the sectoral level: The case of Turkey

It has been clearly understood that energy is one of the main parameters of growth, especially in the last century, For this reason, energy, which has become a civilization locomotive, has become a key element of production and social welfare with its increasing importance. Within the scope of this study, which investigates the effect of sectoral and total energy consumption on growth, the 1970-2019 period data of the variables of CO2 consumption, total final energy consumption, energy consumption of industry, transportation and other sectors and gross domestic product per capita were used for Turkey. In this direction, respectively descriptive statistics, Extended Dickey-Fuller (1981) the unit root developed by and Phillips-Perron (1988), the distributed lag autoregressive model (ARDL) for parameter estimation, and finally the Hatemi-J Roca (2014) causality tests were used. The research hypotheses were tested by establishing 3 different models. Taking into consideration the three models established, the increase in the amount of energy used in the industrial sector increases the per capita income, while the amount of energy used in the transportation and other sectors decreases the per capita income. At the last stage of the study, the causality relationship between the variables, among which cointegration relationships were detected, was examined with the Hatemi J-Roca (2014) Asymmetric Causality Test. According to the direction of causality, Asymmetric Causality Test; It is divided into two separate groups, from income to sectors and from sectors to income. According to the test results in which the causality from the sectors to the income was tested, a one-way causality relationship was found from the energy consumption of the industrial sector to the per capita income. These results also show parallelism with ARDL limit test results. On the other hand, it has been determined that there is causality from the negative component of the energy consumption amount of other sectors to both the positive and negative components of the per capita income. Finally, it was found that there is causality from the negative component of total energy consumption to the negative component of per capita income.