The impact of renewable energy production on economic growth: The case of Turkey

Energy, which holds a paramount level of significance concerning economic progress, technological advancements, and environmental considerations, is also an exceedingly vital supplement during the production and consumption phase. The period following the 1970s, marked by an increase in the quality of life and a surge in energy demand owing to economic growth, has necessitated sustainable development. Concomitant with these developments, the energy factor has taken center stage, leading to a surge in the utilization of renewable energy sources. These sources, commonly referred to as environmentally friendly, offer substantial advantages with regard to energy provision. In this study, an empirical analysis has been conducted to examine the impact of renewable energy on the economic growth of the Turkish economy. The time series method is employed for the period spanning from 1990 to 2019. The cointegration relationship was thoroughly examined through the ARDL Bounds Test, followed by an investigation of causality direction using the Toda-Yamamoto causality test. Based on the findings derived from the ARDL bounds test, it has been deduced that the production of renewable energy has a constructive impact on the economic growth in the extended term. The coefficient of renewable energy was determined to be 0.106524. The outcomes derived from the Toda-Yamamoto causality results analysis reveal the absence of any identifiable causal connection between generation of sustainable energy and the advancement of the economy. These findings suggest that any increases in renewable energy do not have an impact on economic growth within the Turkish context.