An empirical analysis of oil and electricity consumption in industry and housing sector in Turkey

Energy constituting one of the basic needs of humanity is a phenomenon that meets the needs of people in many areas from lighting to heating, from heating to transportation. Increasing technological developments, globalization and industrialization have led to increases in the demand for energy. As a result of demand increases, the energy concept has reached even more critical point in regards to the relations between the countries of the world. The major reasons affecting the importance of the energy concept can be stated as: unfair distribution of energy resources among countries and limitation in the energy resources resevers in the nature. The aim of this study is to measure Turkey`s dependency of the oil and the electricity consumption in industry and housing. Another purpose of this study is to measure the degree of dependancy of these sectors and how a policy applied might affect the economy. This study consists of three main parts. In the first section, basic information regarding the market structure of energy sources have been provided. In the second section, the VECM, VAR models have been discussed and standardized tests were used. In the third section of the study, findings from the analysis of sectoral investigation of Turkey`s oil and electricity consumption have been interpreted. The findings showed that elasticities of electricity and oil consumption are inelastic. In addition, the elasticities of oil and electricity consumption in the industrial sector are more inelastic than that of housing sector. As a result of the VAR model are analyzed variables affecting the consumption of electricity and oil.