The impact of renewable energy and non-renewable energy consumption on economic growth in Turkey

Economic growth is one of the key factors determining the development level of countries and has always been analyzed in conjunction with various variables. In this context, the investigation of the sources of economic growth and the formulation of economic policies are of great importance for achieving sustainable growth. With the process of globalization, countries have entered a phase of economic growth, and in this process, energy plays a central role as a fundamental input in growth models. The oil crises of 1973 and 1979 further highlighted the impact of energy on economic growth. In this study, the effects of renewable and non-renewable energy consumption on economic growth in Turkey are analyzed using the ARDL bounds testing approach. Time series data for Turkey from 1990 to 2021 were used. According to the findings, the variables were subjected to ADF (Augmented Dickey-Fuller) and PP (Phillips-Perron) unit root tests, and it was determined that all variables were stationary at the first difference. Additionally, long-term cointegration relationships were found between the variables. In the short term, a 1% increase in renewable energy consumption raises economic growth by 0.304426%, while a 1% increase in non-renewable energy consumption raises economic growth by 0.954432%. In the long term, a 1% increase in renewable energy consumption raises economic growth by 0.280938%, and a 1% increase in non-renewable energy consumption raises economic growth by 3.654517%. According to the results of the Granger causality test, a unidirectional causality relationship was observed between renewable energy consumption, non-renewable energy consumption, and economic growth.