Energy transition and economic structural transformation in Türkiye

In 1923, Turkey's economy was predominantly agrarian in structure. However, through a series of implemented policies, it gradually underwent a structural transformation and by 2023 had evolved into an economy dominated by industrial and service sectors. During this process of economic transformation, Turkey simultaneously diversified its energy sources—transitioning from a reliance on primitive biofuels (such as wood and dung) and limited coal usage in 1923 to reaching the final stage of integrating nuclear energy into its supply mix by 2023. This thesis investigates the relationship between the transformation of energy sources and the economic structural transformation in Turkey, including the directionality of this relationship and the underlying influencing factors. To quantitatively assess structural transformation, the Structural Transformation Index (STI) methodology is employed, utilizing the Norm of Absolute Value Index (NAV) for calculation purposes. Transformation rates were computed using data provided by the Turkish Statistical Institute (TURKSTAT) covering the period from 1923 to 2023. The findings are then analyzed in conjunction with data from the Ministry of Energy and Natural Resources (MENR) to model the interrelation between energy diversification and structural economic change. The results of the study indicate that changes in energy source utilization serve both as a driving factor and as a direct outcome of the structural transformation process. The increasing GDP shares of the industrial and service sectors have contributed to a diversification of energy sources and an expansion of their application areas. Conversely, the diversification of energy resources has influenced sectoral productivity, thereby affecting the redistribution of sectoral shares within the national economy.