The effect of renewable energy use on sustainable economic growth

Energy use is the most important input of all sectors as well as ensuring the social and economic development of countries. Especially in developing countries energy usage areas are increasing dramatically. Energy production in the world is mostly met from thermal, hydroelectric and nuclear reactors. The rapid consumption of fossil fuels and the release of greenhouse gases to the atmosphere cause global warming and therefore not only the energy crisis; it also causes an ecological crisis. Therefore, the transition to renewable energy usage has become mandatory in recent years. The aim of this study is to determine the renewable energy usage impact on economic growth in Turkey. The data used in the study consist of time series and cover the years 1990-2019. The impact on economic growth of renewable energy usage in Turkey is determined by the vector error correction model. The causality relationship between the data is determined by the Granger causality test. According to the results of the model, if the share of renewable energy usage in total energy consumption increases by 10%, it is estimated that there will be 1.8% increase in the gross domestic product in the long-run. Also, it has been determined that there is a unidirectional causality relationship between renewable energy use and economic growth. The most important initiative to increase the impact of renewable energy use on economic growth is to shift energy policies to the domestic and renewable energy sector with new technologies. Turkey has a very high potential in terms of renewable energy sources. Therefore, renewable energy production must be evaluated in the most efficient manner on Turkey's sustainable development.