Relationship between industrial output and energy consumption in Turkey during the period of 1980-2007

Importance of energy both on production and consumption sides is a clear reality which does not require explanation. Especially after oil crises of 1970s, energy has been evaluated as a production factor and with developments in the area of econometric tests, causality between output level and energy consumption has started to be researched. In these researches, the relationship between output level (usually GDP) and energy consumption explored and different results have been achieved for different countries, periods and methodologies. Some researches with disaggregate energy consumption and industrial output instead of GDP had also appeared in the recent literature. In this thesis, causality between industrial output and energy consumption in Turkey is explored for the period of 1980-2007. Unidirectional causality running from industrial output to energy consumption has been found using the econometrical methodology defined in the thesis and policy implications has been noted in the context of these findings.Key Words1. Energy2. Energy Consumption3. Industrial Output4. Energy and Development5. Turkish Industrial Sector