The effects of energy consumption on sustainable economic development: Environmental consequences

Energy consumption plays a critical role in the economic growth processes of countries. The sources of energy, their consumption and effects on the environment affect the sustainable development of countries. Access to reliable and affordable energy enhances productivity, supports industrialization, and improves living standards. Conversely, inadequate energy infrastructure can hinder economic growth and exacerbate development challenges. Therefore, strategic investments in energy systems are essential to promote balanced and sustainable economic progress (Dinçsoy and Doğan, 2023). Although the tendency towards renewable energy resources is increasing, especially in developed countries, non-renewable energy (NRNW) resources are still being used intensively. As a result, the threat of increasing Greenhouse Gas (GHG) emissions on the environment continues. Dangerous GHG such as Carbon Dioxide (CO2) cause significant environmental problems (Intergovernmental Panel on Climate Change (IPCC), 2013). It aims to prevent environmental problems by reducing GHG Emissions through international organizations, agreements, and conferences. This thesis aims to explain the hypothetical relationship between Economic Growth and the Environment, within the framework of Sustainable Development. The Environmental Kuznets Curve (EKC) Hypothesis was used to explain the hypothetical relationship between economic growth and the environment. The EKC Hypothesis suggests that economic growth reduces environmental problems after a certain income level (Kuznets, 1955). In that context, this thesis aims to contribute to the literature on Sustainable Economic Development from a different perspective by analyzing 124 countries in four groups, taking into account socioeconomic factors such as education, life expectancy, and income level. The empirical results of this thesis reveal that the EKC Hypothesis is not valid for any country group and that more comprehensive and varied policies are required for the success of Sustainable Development.