The relationship between renewable energy consumption and economic growth in Turkish economy: A time series analyses

Nowadays, renewable energy resources have been coming into prominence in the economic growth literature. the main purpose of this thesis is to investigate the link between renewable energy consumption and economic growth theoretically and empirically. In the aplication part of thesis, the relationship between renewable energy and economic growth is empirically investigated by the time series over the period of 1970-2016. The PP and Ng-Perron tests are used for the unit root analyses of vaiables. The Lee-Strazicich tests with two structural breaks is also used for the unit root analyses of variables. The presence of long run relationship between the variables is examined by the ARDL bounds test. The long run and short run parameters are estimated by the OLS estimation technique in the context of ARDL model. The causal links between the variables are tested by using the Granger causality test. Empirical findings taken from the analayses reveal that the variables are statinary in their first difference. The results of ARDL bounds test indicate that there is a long run relationship between the variables. There is a positive and statistically significant relationship between renewable energy consumpion and economic growth in the long run. According to the results of causality test, there is not a causality between renewable energy consumption and economic growth.